reuters By Vivianne Rodrigues
NEW YORK, Nov 22 (Reuters) - U.S. stock futures pointed to
a lower market opening on Tuesday as oil prices rebounded,
raising concerns about the impact of higher energy costs on the
U.S. economy.
Investors also may focus on the release of minutes of the
Nov. 1 meeting of the Federal Reserve's rate-setting committee.
The minutes are due at 2 p.m. (1900 GMT).
Microsoft Corp. shares may be active after the launch of
its new Xbox 360 video console in North America.
"The rise in oil prices this morning is making many
investors pause," said Andre Bakhos, president of Princeton
Financial Group. "After weeks of gains in stocks, the fear of
higher energy costs and higher rates seems to have returned."
S&P 500 futures were down 2 points, below their fair
value, a mathematical formula that evaluates their pricing by
taking into account interest rates, dividends and time to
expiration on the contract.
Dow Jones industrial average futures were down 15 points,
and Nasdaq 100 futures were down 4.5 points.
U.S. light crude futures were trading $1.05 higher at
$58.75 a barrel.
Earlier this month, the Fed raised the benchmark interest
rate to 4 percent. A Reuters survey of around 100 economists
suggested that the Fed funds rate would peak at 4.75 percent in
mid-2006, by which time many expected a slowdown in the U.S.
housing market to dampen economic growth.
In earnings news, maternity clothing retailer Mothers Work
Inc. reported a larger quarterly loss. ID:nWEN4904
Volume could be light during this holiday-shortened week.
U.S. stock markets will be closed on Thursday in observance of
Thanksgiving holiday and will close early at 1 p.m. (1800 GMT)
on Friday.
"We are entering into Thanksgiving mode, with trading
getting thinner and, perhaps, more volatile," said Bakhos.
On Monday, the Dow Jones industrial average .DJI> rose
53.95 points, or 0.50 percent, to end at 10,820.28. The
Standard & Poor's 500 Index .SPX> was up 6.58 points, or 0.53
percent, to 1,254.85.
For the year, the Dow is up about 0.4 percent, the S&P 500
is up 3.5 percent, and the Nasdaq is up about 3 percent.
REUTERS
Reut 12:05 11-22-05
NEO
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