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US STOCKS-Futures dip on contagion fears after Irish bailout

Published 11/29/2010, 07:51 AM
Updated 11/29/2010, 07:56 AM

* Ireland gets bailout, investor jitters remain

* Euro hovers near two-month lows versus the U.S. dollar

* Futures off: Dow 9 pts; S&P 1.5 pts; Nasdaq 6.25 pts

NEW YORK, Nov 29 (Reuters) - U.S. stock index futures fell on Monday as worries lingered about Europe's ability to contain a credit crisis despite a bailout for Ireland over the weekend.

* Offsetting those concerns, U.S. shoppers may be ready to come back after the recession. They spent 6.4 percent more over the Black Friday weekend than last year in the traditional start to the year-end shopping season after the U.S. Thanksgiving holiday.

* European stocks ticked 0.7 percent lower in choppy trading near midday and the euro fell to two-month lows against the dollar after European Union finance ministers endorsed an 85 billion-euro loan package to help Dublin bridge its deficit and shore up the economy.

* Nervousness about Ireland and the possibility it could lead to bigger problems as the euro zone works its way through a sovereign debt crisis has weighed on stocks in recent weeks. The Irish bailout could lead to short-term gains, but worries over contagion to Portugal and Spain may also limit the early optimism.

* S&P 500 futures fell 1.5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dropped 9 points, and Nasdaq 100 futures dipped 6.25 points.

* Adding to global jitters, South Korean President Lee Myung-bak vowed retaliation against any further provocation after the North attacked a South Korean island last week and anger grew at the South's response.

* Adding to geopolitical tensions, whistle-blowing website WikiLeaks leaked a vast cache of U.S. diplomatic cables, including ones that showed Saudi King Abdullah repeatedly urged the United States to attack Iran.

* Wal-Mart Stores Inc made a $2.3 billion formal bid for 51 percent of Massmart Holdings Ltd to give it a substantial presence in South Africa and pave the way for further expansion in the continent.

* Commodity-related shares led U.S. stocks lower on Friday in a shortened post-holiday session. Markets were closed on Thursday for Thanksgiving.

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