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Wall St. confidential
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March 27, 2001: 8:44 a.m. ET
Report on consumer sentiment seen as key indicator of nation's economy
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NEW YORK (CNNfn) - U.S. stock investors, who have been anything but confident so far in 2001, find out Tuesday about the state of consumer confidence -- a key element in determining the nation's economic outlook.
Investors were generally positive in the hours before the report on consumer confidence from the private Conference Board. Nasdaq-100 futures rose about 1 percent, indicating a higher Nasdaq market open. Standard & Poor's futures were higher after taking fair value into account, pointing to a positive start for the S&P 500 and Dow Jones industrial average.
Economists surveyed by Briefing.com expect the consumer indicator -- slated for release after the markets open -- to decline to 105 from 106.8 in February. The lower reading would be a sign of a slower economy -- which may be interpreted positively by Wall Street because it could signal a continuation of the Federal Reserve's effort to cut interest rates.
The Fed has cut short-term rates three times this year, each time by one-half percentage point, in a bid to fend off recession.
It's not certain if Fed Chairman Alan Greenspan will give any signals about the central bank's plans when he addresses a conference on monetary policy before markets open. But the speech will be closely watched for any hints about whether the central bank is open to cutting rates before the next scheduled meeting of its policy makers in May.
Consumer confidence is watched closely by the Fed, other policy makers and investors since spending by consumers fuels two-thirds of the U.S. economy.
The Dow Jones industrial average starts the session on a bit of a roll, having risen more than 5 percent since the intraday low reached last Thursday afternoon. The Dow stands at 9,687.53 after Monday's nearly 2 percent advance.
The Nasdaq composite index begins at 1,918.49 following a one-half percent drop, while the S&P 500 starts at 1,152.69 after rising about 1 percent.
Asian markets closed lower Tuesday, with Tokyo giving back some of the gains from the prior two sessions. European stocks rose slightly in midday trading.
Treasury prices slipped early Tuesday. The yield on the 10-year note rose to 4.86 percent from 4.85 percent late Monday, while the yield on the 30-year bond increased to 5.36 percent from 5.35 percent.
The dollar was unchanged against the euro and higher versus the yen. Brent oil futures gained 25 cents to $25.65 a barrel in London.
 Sweden's Ericsson, the world's No. 3 mobile phone maker, said Tuesday it will cut about 3,300 jobs and close two British plants as it tries to stem losses. Nokia, Ericsson's Finnish rival, said it plans to cut up to 400 jobs. Ericsson (ERICY: Research, Estimates) American depositary shares (ADS) closed Monday at $5.84, up 13 cents, while Nokia (NOK: Research, Estimates) ADSs rose 62 cents to $27.08.
A strike by Comair pilots is in its second day, causing cancellation of flights for the Delta Air Line-owned commuter service operator. Delta (DAL: Research, Estimates) shares advanced $1.73 to $39.70 Monday.
Health care products maker Johnson & Johnson (JNJ: Research, Estimates) agreed to buy Alza (AZA: Research, Estimates), a developer of processes to deliver drugs to the body, for $10.5 billion in stock. The deal established a value -- based on Monday's closing price on J&J -- of $41.84 a share for Alza, which closed up $8.70 Monday at $38.75. J&J shares closed down $2.83 at $85.38.
Noted investor Warren Buffett said Tuesday his Berkshire Hathaway investment company had been doing little buying in stock markets and he suggested shares remained overvalued even after recent falls. 
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