MW: U.S. stock futures slip ahead of auto sales data
U.S. stock futures pointed to an opening dip on Monday after last week's strong gains, ahead of data that could show another month of slumping car sales and amid central bank fears of sliding asset prices.
S&P 500 futures fell 4.3 points to 921.10 and Nasdaq 100 futures slipped 4.75 points to 1,248.20. Dow industrial futures lost 28 points.
U.S. stocks were coming off a strong week, with the Dow Jones Industrial Average rising 6%, albeit on low volumes. The S&P 500 rose 6.8% and the Nasdaq Composite added 6.7%.
In separate comments, Lucas Papademos, the number-two official at the European Central Bank, and Janet Yellen, president of the San Francisco Federal Reserve Bank, said over the weekend that they would quickly seek to contain the danger of deflation if it emerges in coming months.
Yellen said the U.S. faces a clear risk of deflation: "The odds are high that over the next few years, inflation will decline below desirable levels."
To keep falling prices from becoming entrenched, the Fed would have to make it clear to the financial markets that such an outcome is unacceptable.
Goldman Sachs strategists said the best place to put money this year is in stocks.
"We believe that significant macro challenges and optimistic earnings expectations are likely to lead to high market volatility over the first half of 2009. We expect a large rebound in the second half, believing that the rate of deterioration in macro data will slow and that large fiscal stimulus packages will be announced," they said.
President-elect Obama is preparing a $300 billion package of tax cuts, according to several reports.
Meanwhile, a dismal slate of auto sales data is due for release, with U.S. sales during December expected to drop by around 40%. Frankfurt-listed shares of General Motors and Ford Motor Co. were little moved.
Drug stocks also may attraction attention as the Financial Times quoted Pfizer CEO Jeff Kindler as saying that the company is willing to buy a large rival.
"We are open to opportunities and constantly looking at those which are big, small and in-between," Kindler said.
In Frankfurt trade, Pfizer shares rose 1%.
Elsewhere, Amazon.com was upgraded to overweight from neutral by J.P. Morgan, as the broker expects the Internet book seller to increase market share in e-commerce.
Global stocks were generally stronger, with the Nikkei 225 up 2.1% in Tokyo and the FTSE 100 up 0.5% in London.
The dollar rose 1.3% to 93.01 yen, and oil futures added $1.11 to $47.45 a barrel.
