MarketWatch.com - Pre-Market Indications

Tuesday, June 10, 2008

Opening View: Bernanke's Inflation-Related Comments Push Futures Lower

U.S. stock futures are heading lower into the open, indicative of a potentially negative start to the regular session. In overseas trading, banking concerns are leading markets lower, with all 11 foreign indices that we track in negative territory. In focus this morning are comments from Fed Chief Ben Bernanke, earnings-related news from Texas Instruments, and potential problems for UBS.

Federal Reserve Chairman Ben Bernanke, addressing a conference in Boston, last night stated, "The Federal Open Market Committee will strongly resist an erosion of longer-term inflation expectations." Many investors believe an interest-rate hike may now be in store from the central bank. Big Ben's comments, combined with Treasury Secretary Henry Paulson opining that he wouldn't take the option of foreign-exchange intervention off the table, helped push the U.S. dollar higher against most of its major rivals.

Elsewhere, Texas Instruments (TXN: View sentiment for TXNsentiment, chart, options) narrowed its second-quarter earnings forecast to 43 cents to 47 cents per share, on revenue of $3.33 billion to $3.46 billion. Previously, the firm estimated second-quarter earnings between 42 cents and 48 cents per share, with revenue seen coming in around $3.24 billion to $3.5 billion. Analysts, on average, predict quarterly numbers of 46 cents per share on revenue of $3.39 billion.

The Wall Street Journal reported that Swiss banking giant UBS (UBS: View sentiment for UBSsentiment, chart, options) warned that it may take additional mortgage-related write-downs, considering prices on the securities have further declined. Analysts are now predicting a second-quarter loss for the financial firm.



Opening View: Bernanke's Inflation-Related Comments Push Futures Lower

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