January 23, 2008 U.S. stocks headed for low open

NEW YORK (AP) - U.S. stocks headed for another lower open Wednesday amid continuing investor uneasiness, but futures prices pointed to less intense pressure than on Tuesday, when stocks plunged at the opening bell.

The Federal Reserve's emergency cut of its federal funds rate by 0.75 basis points to 3.5 percent eventually helped calm U.S. markets, but it was already clear Tuesday that investors had doubts about the potency of the Fed action. Rate cuts typically take months to work their way into the economy.

Meanwhile, a disappointing forecast from Apple Inc. showed how fragile investor sentiment is.

The maker of the iPod issued a forecast for its fiscal second quarter that said sales would likely grow by 29 percent. The figure would represent faster growth than in earlier years but fell short of what Wall Street had expected.

Apple's expectations appeared to confirm worries about consumer spending. As consumers account for more than two-thirds of the economy, investors are keen on learning whether retailers and other companies will have a harder time prying open wallets.

Shares of Apple fell more than 10 percent in premarket trading.

Dow Jones industrial average futures fell 142, or 1.19 percent, to 11,809. Futures for the broader Standard & Poor's 500 index fell 24.90, or 1.90 percent, to 1,284.40, and the Nasdaq composite index fell 50.00, or 2.78 percent, to 1,751.00.

The decline in futures, while substantial, appeared

Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.34 percent from 3.41 percent late Tuesday. The dollar was mixed against other major currencies.

Light, sweet crude fell $1.05 to $88.14 per barrel in premarket electronic trading on the New York Mercantile Exchange.

In other corporate news, United Technologies Corp., one of the 30 stocks that comprise the Dow industrials, said its fourth-quarter earnings rose 23 percent as sales increased across each of its businesses. The results from the parent of names like Sikorsky and Otis topped Wall Street's forecast, according to Thomson Financial.

Adding to concerns about technology issues, Motorola Inc. said its earnings fell sharply in the fourth quarter and the maker of mobile phones warned that the recovery in its struggling handset unit will take longer than expected.

Delta Air Lines Inc., the nation's No. 3 carrier, reported it was hampered by high fuel prices in the fourth quarter but was able to post a narrower loss on a solid increase in sales.

In a bright spot, Texas Instruments Inc., which makes semiconductors for about half the world's mobile phones, said Tuesday its fourth-quarter earnings increased 13 percent and sales turned positive after a yearlong decline.

While investors worldwide remain concerned about the health of the U.S. economy, the Fed's rate cut and Wall Street's ability to come off its lows Tuesday helped drive a rebound in Asian trading Wednesday.

Japan's Nikkei stock average closed up 2.04 percent after falling 5.7 percent Tuesday. Similarly, Hong Kong's Hang Seng index surged 10.72 percent, showing its biggest gain in 10 years after falling 13.7 percent in the previous two sessions.

In morning trading in Europe, however, stocks fell. Britain's FTSE 100 fell 1.42 percent, Germany's DAX index fell 3.12 percent, and France's CAC-40 fell 2.45 percent. --- By TIM PARADIS AP Business Writer

(Copyright 2008 by The Associated Press. All Rights Reserved.)