At 8:35 AM EDT:
S&P 500: -3.00; 1,296.25
NASDAQ: -5.25; 1,565.75
DOW: -14.00; 11,369
NIKKEI 225: -1.78%; 15,794.38 (-286.08)
HANG SENG: -1.15%; 16,948.59 (-197.17)
S&P/ASX 200: -1.42%; 5,026.00 (-72.30)
BSE SENSEX 30: -3.09%; 11,550.69 (-367.96)
FTSE 100: -0.51%; 5,849.60 (-29.70)
CAC 40: -0.45%; 5,050.96 (-22.61)
XETRA-DAX: -0.32%; 5,776.73 (-18.53)
Commodity Futures (Reuters/Jefferies CRB)
Oil: -1.37%; $65.34 (-$0.91)
Gold: -2.38%; $602.80 (-$14.70)
Natural Gas: -4.67%; $5.41 (-$0.26)
Silver: -2.97%; $11.80 (-$0.361)
Asian Headlines (via Bloomberg.com)
Oil Drops, Gold Tumbles Below $600 an Ounce After Iran Talks Make Progress Oil fell for a sixth day, its longest losing streak in almost three years, and gold tumbled below $600 an ounce after Iranian and European negotiators reported progress in a second day of talks on a nuclear dispute.
Japan's July Machinery Orders Slump 16.7 Percent, Most in Almost 20 Years Japan's machinery orders fell the most in almost 20 years, dashing expectations that the central bank will raise interest rates before the end of the year.
Asian Equities Slide; BHP Billiton, Mitsui Mining Fall as Oil, Metals Drop Asian stocks had their biggest slide in seven weeks, led by BHP Billiton (NYSE:BHP) and Zijin Mining Group Co., as gold declined below $600 an ounce and oil dropped to a five- month low.
China Central Bank's Zhou Accepts Yuan Gain, Says Has 'Enough' Reserves People's Bank of China Governor Zhou Xiaochuan said he accepted gains in the yuan that took the currency to its strongest since July 2005 last week and suggested policy makers want to curb foreign-exchange reserves.
Malaysia's Genting Buys Control of U.K.'s Stanley Leisure for $901 Million Genting Bhd., a gaming company owned by Malaysia's third-richest family, will buy Stanley Leisure Plc, the largest U.K. casino operator, for 483.6 million pounds ($901 million) to capitalize on a relaxation of Britain's gaming laws.
European Headlines (via Bloomberg.com)
Stocks in Europe Head for Four-Week Low as Copper, Oil Slide; BHP, BP Fall European stocks were headed for a four-week low after copper, oil and gold fell, raising concern that a global slump in commodity prices will cut earnings at mining and energy companies. BHP Billiton (BHP) and BP Plc (NYSE:BP) dropped.
Trichet, at G-10 Meeting, Says Global Growth Likely to Remain 'Dynamic' European Central Bank President Jean- Claude Trichet and his Group of 10 counterparts meeting in Basel, Switzerland, said they're confident about global economic growth, signaling that they see room to raise interest rates further.
Telecom Italia Plans to Increase Focus on Internet Services, Media Content Telecom Italia SpA, Italy's biggest phone company, plans to increase its focus on Internet services and selling media content as part of a reorganization of the fixed-line and mobile units.
U.S. Headlines (via Bloomberg.com)
Dell Delays Filing Second-Quarter Report Amid SEC Accounting Investigation Dell Inc. (NASDAQ:DELL) said it will delay filing its second-quarter report with regulators because of an ongoing investigation by the U.S. Securities and Exchange Commission into its accounting and financial reporting.
U.S. Stock-Index Futures Decline; GE, DuPont, Exxon Shares Fall in Europe U.S. stock-index futures declined before earnings reports this week that may show growth is slowing. General Electric Co. (NYSE:GE), DuPont Co. (NYSE:DD) and Exxon Mobil Co. (NYSE:XOM) slid in Europe.
Freescale Shares Surge on Report the Motorola Chip Spinoff Will Go Private Freescale Semiconductor Inc. (NYSE:FSL) shares jumped after the New York Times reported the No. 3 U.S. computer-chipmaker may be sold for more than $16 billion in the largest technology industry buyout.
Merrill, Morgan Stanley, JPMorgan Equity Trades Conflict With Exchanges In July, Merrill Lynch & Co. (MER), the world's biggest brokerage firm, said it traded 2 million shares of Houston-based pipeline operator Kinder Morgan Energy Partners LP (NYSE:KMP). The New York Stock Exchange said Merrill traded barely a sixth of that amount, or 351,000 shares, for the month.
Bush Commemorates Sept. 11 Anniversary With Ceremonies, National Address President George W. Bush, trying to assure Americans he has made them safer since the Sept. 11 attacks and help his party in the congressional elections, addresses a nation tonight that has grown skeptical of the Iraq war and its link to the fight against terrorism.
Five Years Later, Americans Still Divided Over Battle Against Terrorism With terror never far from voters' minds, there are two familiar refrains in America's congressional elections: There hasn't been an attack on the homeland since September 2001, the Republicans remind us; and in five years, we still haven't nabbed Osama bin Laden, the Democrats reply.
Federer, With Third U.S. Open Victory, May Finally Get America's Attention Roger Federer may finally get America's attention after winning his third straight U.S. Open championship.
U.S. Wake Up Call (via CNN Money; author: Alexandra Twin)
After a sleepy start to September, Wall Street is set to pick up the pace in the week ahead.
Investors drifting back in to the market last week after the Labor Day holiday were treated to a scant smattering of economic news, highlighted by a second-quarter productivity report that showed a surprise jump in unit labor costs - a key measure of wage inflation.
While the report worried some investors, it ultimately did little to resolve the main issue Wall Street's been mulling over: namely, just how sharply the economy is slowing down and what that will mean for interest rates.
The week ahead won't bring any resolutions, but it will bring more clues.
Reports are due on the trade balance, import and export prices, manufacturing, consumer sentiment, and most notably - retail sales and consumer prices. (For details, see the chart.)
A few quarterly earnings reports even trickle in next week, with Wall Street brokerages including Goldman Sachs (Charts) and Bear Stearns (Charts) due to release results. Analysts surveyed by Thomson Financial expect third-quarter earnings will jump about 14.4 percent from a year ago, but the first big batch of results won't start pouring for a month.
A number of Fed officials speak this week as well, including two voting members of the central bank's policy-making arm: Vice chairman Donald Kohn and San Francisco Fed president Janet Yellen on Tuesday.
Last week, Yellen made comments to the effect that the Fed may need to restart its recently paused interest rate-hiking campaign because of stubbornly high inflationary pressures. That didn't thrill investors and pressured stocks.
Although few economists expect the central bank to lift rates at the Sept. 20 policy meeting, there is the risk of more rate hikes before the end of the year, especially if inflation doesn't cool off.
The news week is also notable since Monday marks the five-year anniversary of the Sept. 11 attacks.