Dow and Nasdaq futures holding solid gains as the US session moves
along, Dow futures up about 51 points and Nasdaq futures up about 12
after both posted solid gains yesterday.
Traders digest a large number of earnings reports. Retailer Target (TGT)
was downgraded to Neutral from Outperform at Credit Suisse . The firm
cited the continued deterioration of Target's credit business. US Bancorp (USB) was downgraded to Neutral from Buy at Goldman Sachs, according to Dow Jones.
Oil prices continued their decline Wednesday, sinking
below $127 a barrel in electronic trading as a hurricane headed for the
Texas Gulf coast appeared unlikely to cause much disruption to offshore
production.
Also contributing to the decline was the expectation that gasoline
supplies rose last week as consumers cut back use due to the recent
high prices. The government was scheduled to issue its weekly inventory
report at 1435GMT.
Housing: A bill aimed at easing the recent housing market crisis was
expected to reach the House floor Wednesday, with the possibility that
President Bush could sign it into law this week.
Washington Mutual, one of the banking companies
suffering from the after-effects of the housing crisis, late Tuesday
reported a $3.3 billion net loss for the second quarter, far worse than
Wall Street expected. (full story)
Warehouse club store operator Costco Wholesale said
its fiscal fourth-quarter and full-year profits would be "well below"
Wall Street estimates due to high fuel costs, and added that it would
expand a stock repurchasing program.
Web portal Yahoo reported second-quarter results
that missed analysts' expectations as it struggled with dwindling
market share and softening economic conditions.