U.S. Shares Set to Open Lower


By Huw Jones LONDON (Reuters) - U.S. shares were set to open lower on Tuesday as the dollar tumbles and crude oil jumps toward $50 a barrel, prompting investors to take some cash off the table. The stock market reopens after Monday's public holiday as retailers dominate the tail end of the U.S. earnings season, with Home Depot (HD.N: Quote , Profile , Research ) and Federated Department Stores (FD.N: Quote , Profile , Research ) reporting. The New York Times said May Department Stores Co. (MAY.N: Quote , Profile , Research ) has suspended its search for a new chief executive officer as merger talks with Federated Department Stores Inc. (FD.N: Quote , Profile , Research ) advanced. According to the Times, the talks between Federated and May gained momentum over the weekend. The newspaper, citing one executive, said May has been holding out for a price "north of $40 a share." And Target Corp. (TGT.N: Quote , Profile , Research ) said on Monday that it expects February sales at stores open at least one year to exceed its previous forecasts. U.S. supermarket operator Winn-Dixie Stores (WIN.N: Quote , Profile , Research ) filed for bankruptcy protection, citing increasing operational challenges since reporting a wider quarterly loss earlier this month. By 5:42 a.m. EST, U.S. stock futures were pointing to opening losses of 0.3 to 0.6 percent for the three main indexes (SPH5: Quote , Profile , Research ) (DJH5: Quote , Profile , Research ) (NDH5: Quote , Profile , Research ) . DOLLAR, OIL WEIGH U.S. crude oil prices rallied 2 percent to more than $49 a barrel, and the dollar's 1 percent slide to a five-week low against the euro are likely to hit stock market sentiment. "The dollar has fallen sharply, there is evidence that growth may wane in the second half of the year and interest rates have started the dreary march north -- perhaps even three hikes in the next four months," said David Buik of Cantor Index. The U.S. Consumer Confidence Index for February is due at 10 a.m. EST, with a slight easing to 102.9 from 103.4 in the prior month being forecast by economists.     Continued ...
Quelle "U.S. Shares Set to Open Lower" : reuters.com

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