Lower start seen on global econ worries, overseas dip

Small-cap stocks are expected to open lower, pulled down by reports that Japan has officially entered into a recession for the first time in seven years and by disappointment that the G-20 meeting this weekend didn’t appear to serve up an exciting stimulus package. The world stock index slipped down 0.7%, powered by losses in Europe overnight. Stock index futures were off about 1% ahead of the opening, which would suggest a Russell 2000 (NYSE:IWM) open near 452.50.

Libor rates edged slightly higher overnight and have been correcting up slightly after going down every day for a month. The New York Manufacturing Survey came in at minus 25.4, which was slightly better than the forecast for a loss of 26.1. Still, the number was the worst showing on record (the data series began in July 2001).

On the corporate news front, Citigroup Inc. (NYSE:C) was off about 2% in pre-market trading on media reports that the giant bank plans to slash some 50,000 jobs. Also, tech bellwether Dell Inc. (Nasdaq:DELL) tumbled some 3% in European trading following analyst downgrades. Stocks with potentially bullish tilts include Charles Schwab Corp. (Nasdaq:SCHW) and Amercian Express Co. (NYSE:AXP) which could benefit from a bullish note in Barron’s. Colgate Palmolive Co. (NYSE:CL) received a bullish comment from analysts at Morningstar and ConocoPhillips (NYSE:COP) might get a rise from . . .

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