07.10.2008 17:17

Before the bell: stocks prepare to dive.[M]

Futures go on a sharp retreat : (S&P futures vs fair value: -7.20. Nasdaq futures vs fair value: -12.80.), and now suggest a negative start, due to disappointment that a Fed announcement on its Term Auction Facility did not include more measures.
Crude oil prices are rallying, up 3.5% to $90.90 per barrel as the dollar falls 0.8%. Looking ahead, Minneapolis Fed President Stern will speak on financial shock at 15:15 GMT AM ET and Fed Chairman Bernanke will speak about the economy at 17:15 GMT. The minutes from the Sept. 16 FOMC meeting will be released at 2:00 PM ET, followed by consumer credit for August at 18:00 GMT . After the close, Dow component Alcoa (AA) kicks off third quarter reporting season.
Bank of America on Monday reported a 68% plunge in third-quarter profit, chopped its dividend in half and announced plans to sell off $10 billion worth of stock.