Russell 2000 futures slip
Russell 2000 (NYSE: IWM) is slipping ahead of the opening this morning as traders reacted to a slowing economy and its effect on corporate earnings.
Stocks are expected to drop back again today following Friday’s sell-off on signs of the summer’s credit crunch resurfacing and languishing corporate earnings from major bellwethers.
Earnings from Schering-Plough, Merck and Hasbro were released this morning. Schering-Plough reportedly doubling its earnings, while Merck raised its 2007 earnings guidance and Hasbro reported a 62% profit rise.
Earnings from Apple, Texas Instruments and American Express are due out after the market’s close.
In further signs of continued worsening credit conditions, Kohlberg Kravis Roberts & Co. and Goldman Sachs Group Inc. abandoned their joint $8 billion leveraged buyout of Harman International Industries Inc., but said they agreed to buy $400 million of Harman bonds.
Bear Stearns said it’s near closing a deal with Citic Securities, a Chinese investment bank, which would give each company a stake in the other, creating the potential for future partnerships.
In other economic news, Chicago Federal Reserve President Charles Evans will give a policy speech today.
