Negative comments out of or regarding several Dow Industrials components have stock futures lower this morning after Lehman Brothers downgraded shares of General Electric (NYSE:GE) $26.17 to "equal weight" from "overweight," saying the recovery of short cycle business has stalled and losses at ERC and GE Capital are pressuring earnings. Shares of GE skidded lower to $24.79 on the New York ECNs.
Philip Morris (NYSE:MO) $42.73 continued to track lower from last night's ECN trading, trading down $5.17 to $37.56 after last night's earning's warning.
The telecom debacle continues after Dow component SBC Communications (NYSE:SBC) $21.90 said it will cut 11,000 jobs, with about 9,000 cuts coming in the fourth quarter, with the balance occurring primarily in early 2003. The company also said it plans to cut capex to $5-6 billion from its previously forecasted $7-8 billion.
Shares of Citigroup (NYSE:C) $29.51 were up 0.5% to $29.68 after the Wall Street Journal reported that the bank is readying to propose a settlement with various agencies conducting investigations into its stock research.
Final Q2 GDP revised modestly higher
The U.S. economy grew 1.3% in the second quarter, a little faster than the 1.1% growth previously estimated.
The second quarter revisions were primarily due to stronger exports that first estimated. Economists had forecasted an unchanged revision.
Stock futures show lower open
Stock futures did show some improvement from their morning lows after the release of the final GDP data, but have sunk back near their lows with S&P futures (sp02z) trading down 6 points at 848.50. NASDAQ futures (nd02z) are lower by 3 points at 869.00 and Dow futures (dj02z) are off 57 points at 7,895.
Fair value for the S&P 500 today is $0.88. That price will not change during the session. HL Camp & Company has their computers set for program buying at $1.38 and set for selling at $-1.72. Fair value for the NASDAQ-100 today is $3.85.