U.S. investors will be watching Monday's meeting between President-elect Bush and Federal Reserve Chairman Alan Greenspan, amid reports the Fed may reduce its hawkish interest rate stance. European markets rose, trading in Asia was mixed and the Dow is set to open higher.
President-elect George W. Bush and Federal Reserve Chairman Alan Greenspan will meet in Washington Monday to discuss the state of the nation's economy. Along with interest rates, Bush said he plans to discuss his tax cut plans with the Fed Chairman.
The meeting comes a day ahead of the Fed's statement on interest rates tomorrow. The Wall Street Journal reported that Fed may issue a statement that the risk of recession is now greater than the risk of inflation, and could even cut interest rates for the first time in more than two years.
Time Warner Inc. (NYSE: TWX) said that its cable division will increase its ownership in the Road Runner high-speed Internet service and manage its operations. Time Warner also lowered its earnings growth rate for fiscal year 2000.
Expect the following technology stocks to be among Monday's most actively traded issues: eToys (Nasdaq: ETYS), Solectron (NYSE: SLR) and 3dfx Interactive (Nasdaq: TDFX).
The Nasdaq lost ground on Friday, down 75.24 to 2,653.27. The Dow Jones industrial average slipped triple-digits, falling 240.03 to 10,434.96.
At the Bell
The Dow Jones industrial average is expected to open up 147 points. The Standard & Poor's 500 futures index gained 19 to 1345, above fair value, at 7:24 a.m. EST in 24-hour electronic trading.
The Inter@ctive Week @Net Index dropped 9 to 333.91.
The major Asian markets were mixed. The Nikkei 225 lost 68.39 to 14,483.90. On the positive side, Hong Kong's Hang Seng rose 49 to 15,024.53 and Singapore's Strait Times gained 21.55 to 1969.73.
European markets gained ground. London's FTSE 100 rose 45.20 to 6,221.00, the CAC 40 in Paris was up 70.29 to 5,909.83 and the DAX in Frankfurt jumped 105.31 to 6,436.61 at 7:15 a.m. EST.
Reuters contributed to this report.