Wall Street eyes rebound, Fed meeting

June 23, 2008 6:07:29 PM PDT
Investors on Wall Street begin week looking ahead.

Stocks are opening moderately higher Monday as investors look to recover some of last week's steep losses but remain wary about high oil prices.

Light, sweet crude is wavering, moving between gains and losses in premarket trading on the New York Mercantile Exchange. The market seems to be shrugging off news that Saudi Arabia is willing to boost production again if consumers require more oil.

With little economic data scheduled for Monday, investors will likely be focusing on the price of oil and positioning themselves ahead of the Federal Reserve's two-day meeting, which lets out on Wednesday. Most investors expect the Fed to keep its key federal funds rate on hold, and in its economic statement, emphasize the rising threat of inflation.

Dow Jones industrial average futures rose 46, or 0.39 percent, to 11,890. Standard & Poor's 500 index futures rose 4.60, or 0.35 percent, to 1,323.60, and Nasdaq 100 index futures rose 4.00, or 0.21 percent, to 1,945.50.

Wall Street finished a rough week with a plunge Friday as worries rose about the financial and automotive sectors and a resurgence in oil prices. The major indexes dropped by more than 1.5 percent Friday, and the Dow fell more than 200 points to close at its lowest level since March.

The financial sector's woes continue: The Wall Street Journal has reported more job cuts in Citigroup Inc.'s investment banking division, and The Financial Times has reported job cuts at Goldman Sachs Group Inc.

On Monday, the yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 4.15 percent from 4.17 percent late Friday. The dollar weakened against other major currencies, while gold prices rose.

Overseas, Japan's Nikkei stock average fell 0.61 percent. In midday trading, Britain's FTSE 100 was flat, Germany's DAX index rose 0.19 percent, and France's CAC-40 rose 0.27 percent.