Wall St. looks for signs

January 29, 2002 Posted: 1357 GMT

NEW YORK (CNN/Money) -- Wall St. will be attuned to signs that the economic recovery may be starting in the form of encouraging words out of the Federal Reserve's monetary policy meeting and President Bush's State of the Union message, as well as the latest quarterly corporate results.

Stock futures were mixed in early trading, signaling a flat start to day's session.

The conclusion of the Fed's two-day meeting Wednesday could mean an end to the recent campaign that has seen 11 straight cuts in the overnight bank lending rate since the beginning of 2001. For some economists and market participants, this could be taken as a sign that the economy is in recovery from what many believe is a recession.

Fed Chairman Alan Greenspan gave a cautiously upbeat assessment of the economy in his testimony before a Senate committee last week. But he also put a damper on the need for an economic stimulus package, something Bush is likely to bring up when he addresses a joint session of Congress on Tuesday night.

Bush's State of the Union speech may have an impact on Wall Street, if his popularity in recent national polls is taken into account. However, the speech is expected to be less focused on the economy and more focused on national security and unity four and a-half months after the worst terrorist attacks in U.S. history.

In corporate news, United Parcel Service (UPS: Research, Estimates) posted a fourth-quarter profit that declined from the same period one year earlier despite bettering analysts' estimates. UPS shares rose 7 cents to $57.10 Monday.

Dow component and beverage maker Coca-Cola (KO: Research, Estimates) on Tuesday posted a fourth-quarter profit -- excluding special items -- that was in line with estimates. Shares of the stock rose 6 cents to $45.21 Monday.

Honeywell International (HON: Research, Estimates), the aerospace components maker, reported a decline in fourth-quarter earnings to 55 cents a share, in line with expectations, from 70 cents a year earlier. Honeywell shares lost 65 cents to $32.05 Monday.

The Dow Jones industrial average begins the session at 9,865.75 after a gain of more than 25 points Monday. The Nasdaq composite index is at 1,943.91, having added 6 points, while the Standard & Poor's 500 index starts at 1,133.06, following a 0.22-point decline.

Most Asian stock markets finished lower Tuesday, with Tokyo hurt by a weaker-than-expected profit forecast from chipmaker Toshiba. European markets were mixed at midday.

Treasury prices were slightly lower in early trading, with the yield on the 10-year note up to 5.11 percent from 5.08 percent late Monday. The dollar weakened versus the yen and was a little stronger against the euro. Brent oil futures fell 36 cents to $19.29 a barrel in London.

The Conference Board's report on January consumer confidence is the key economic report due Tuesday. Economists surveyed by Briefing.com expect the index rose to 96 from 93.7 in December, another sign of strength in the consumer sector, which is key since consumer spending fuels two-thirds of the economy. The report is scheduled for release shortly after Wall Street opens for business.

Before trading begins, the government issued its December report on durable goods orders. Orders for long-lasting goods made by U.S. factories rose 2.0 percent in December, topping the expectations of economists surveyed by Briefing.com, who expected a rise of 1.3 percent. Orders declined 4.8 percent in November.

Financial services firm FleetBoston Financial (FBF: Research, Estimates) posted a big fourth-quarter loss before the open, a far weaker result than analysts' estimates. Shares of the stock rose 11 cents to $35.09 Monday.

After the close Monday, chipmaker Texas Instruments (TXN: Research, Estimates) reported a narrower-than-expected fiscal first-quarter loss and offered an upbeat assessment of the rest of its fiscal year. TI shares rose $1.52 to $29.92 in before-hours trading Tuesday.

Online travel service Expedia.com (EXPE: Research, Estimates) posted a fiscal second-quarter profit that was more than triple the Wall Street consensus forecast. Shares rose $2.14 to $52.90 in before-hours trading Tuesday.