Stocks are poised to regain some of last week's losses, with Dow futures up 247, Nasdaq futures up 43, and S&P futures 25 points higher. HL Camp and Company has fair value for the S&P 500 at $4.56, with program buying set at $5.68.
Gains in financial, oil, and auto stocks have European markets trading higher this morning. The German DAX is 4.37% higher, and stocks in the U.K. and France are up over 3%. Japan was off 2.35%.
Congress has passed a $15 billion relief package for the airline industry. As part of the bill, the federal government will receive stock or warrants in exchange for loan guarantees. The bill also provides a fund that would compensate victims who don't sue the airlines. While the bill doesn't provide help for the estimated 100,000 airline workers that have lost their jobs, a separate bill is being considered for to provide health insurance, training, and unemployment benefits for displaced workers.
A survey conducted by the National Association of Business Economics revealed that 18 of 21 forecasters believe that the U.S. Economy will slip into recession. The next three quarters should see declines of over 1% before stabilizing in the second quarter of 2002.
Consumers are a little more optimistic according the latest data gathered by The Conference Board. Their survey revealed that only 47% of consumers believe the recent tragedy will push the U.S. into recession. 88.6% of consumers do not plan to cut back their spending on big-ticket items, and only 30% said they would postpone or cancel air travel plans. 20% said they would not be making any financial investments.
Heinz Daily Chart
Heinz (HNZ) might squeeze out a gain today after a bullish article in Barron's noted that the company raised its dividend for the 34th consecutive year, this time by 3.2% to 40.5 cents a share. But investors weren't concerned about dividends last week, and the stock dropped $4.41. That broke the stocks four- month winning streak, but Heinz managed to find support at $40.50. If HNZ can manage to hold at this level, perhaps it can reverse and continues its bullish ways.