tim14smith's blog: "paris hilton"

Filed under: Before the bell, Wal-Mart (WMT), DaimlerChrysler (DCX), Market matters, Boeing Co (BA), Palm Inc (PALM), Hilton Hotels (HLT)

Yesterday, stock markets had one of their worst session in months. The Dow Jones industrial average about 158 point, 1.3%, its biggest one-day decline since mid July. The S&P 500, which hit a six-year high only last week, and the Nasdaq, which also came close to a six-year high last week, dropped 1.4% and 2.2% respectively in their biggest drop since the start of June. The Russel 2000 lost nearly 2.6%. Reasons for yesterday's declines include higher oil prices, a weaker dollar and a cautious outlook from Wal-Mart Stores Inc. (NYSE:WMT) as well as possible concerns about economic data coming today and the rest of the week.

This morning, after starting positive, stock futures are now mixed, pointing to a higher start for the S&P 500 and a lower start for the Nasdaq as the market awaits economic readings and comments by Bernanke, the Federal Reserve Chairman.

A slew of economic data will be released today starting with October durable orders at 8:30 a.m. Eastern. Economists are expecting demand to fall b 5% after an 8.3% rise in September. Then, at 10:00 a.m. November consumer confidence will be reported and it is expected to tick up. At the same time, October existing home sales is due from the National Association of Realtors. Economists are predicting a probable decline to 6.14 million from 6.18 million the month before. Standard & Poor's are also scheduled to release its measure of house prices.

Finally, at 12:30, investors will tune in to hear Bernanke speaking. Any statement considered hawkish could send the markets tumbling again.

Oil prices were up today following a report that the Saudi oil minister hinted OPEC could further reduce output. Yesterday the reports on the OPEC cut were already out. Today, in addition, forecasts of cold weather in the United States caused heating oil and natural gas to rise. By midday (Europe), oil prices were above $60 a barrel.

European stocks fell today following another day of the dollar declining against European currencies and continued concern that global economic growth is slowing more than forecast. DaimlerChrysler AG (NYSE:DCX) led the declines.

In corporate news:

Air Berlin, a German budget carrier, will order 60 new Boeing 737 jets worth $5.7 billion from Boeing Company (NYSE:BA).

Hilton Hotels Corp. (NYSE:HLT) is creating a joint venture (pending a government approval) in India with real estate developer DLF Ltd. to develop and own 75 hotels and serviced apartments over the next seven years.

Palm Inc. (NASDAQ:PALM) said after the bell yesterday that it is lowering its earnings target for the current quarter due to delays in the U.S. launch of a new Treo smart phone. Shares are down 6% in pre-market.