On track for a sloppy startStocks futures point to mixed open as...

On track for a sloppy start
Stocks futures point to mixed open as investors await latest comments from Bernanke and reports later in week on inflation; Delphi-UAW deal could lift Dow component GM.
June 12, 2006: 6:35 AM EDT


NEW YORK (CNNMoney.com) - Stocks looking for direction Monday could get it from Federal Reserve Chairman Ben Bernanke's latest comments, due later Monday.

U.S. stock futures are up in early trading, although a comparison to fair value indicates a mixed open for U.S. markets. Investors will be looking to see if equities can rebound after another losing session Friday left major U.S. indexes down about 3 to 4 percent for the week.

This week brings the latest inflation readings for a market already on Fed watch, as the Producer Price Index is due Tuesday and the Consumer Price Index reports Wednesday. Bernanke speaks at a banking industry event in Washington D.C. Monday.

Stocks could get a lift from news late Friday afternoon that the United Auto Workers union and bankrupt auto parts maker Delphi (Research) had reached an agreement on a buyout offer for union members there, a move seen as reducing the risk of a strike that could cripple General Motors (Research), Delphi's former corporate parent which is helping to pay for the offer.

UAW President Ron Gettelfinger, in a message to members on the eve of the union's convention this week, warned that "The challenges we face aren't the kind that can be ridden out. They're structural challenges, and they require new and farsighted solutions." Those comments were seen as preparing the rank and file for further concessions.

Shares of Dow component GM gained 1.6 percent in after hours trading Friday and were up nearly 2 percent in early Frankfurt trading. Shares of Ford Motor (Research) were also up in heavy Frankfurt trading although shares of DaimlerChrysler (Research) were offer 0.5 percent.

Oil prices were higher as traders watched Tropical Storm Alberto, the first of the Atlantic hurricane season, to see if it posed any risk to oil facilities along the Gulf Coast.

The July light crude futures contract for NYMEX rose 33 cents to $71.96 in electronic trading, while the July contract for Brent crude gained 71 cents to $71.19.

Major markets closed mostly higher in Asia Monday on a report that showed a 3.1 percent gain in Japan's gross domestic product. Major European markets were lower in early trading as steelmaker Arcelor again rejected a $28 billion takeover offer from Mittal Steel (Research) and urged shareholders instead to support a proposed merger with Russia's Severstal.

Treasury prices were lower, lifting the yield on the benchmark 10-year note to 4.98 percent from the 4.97 percent level reached late Friday. The dollar was higher against the yen and the euro.

For a more detailed look at the markets before the open, click here.

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