NEW YORK (CNNfn) - U.S. equity markets appeared ready to try Tuesday to recover from the lowest levels in nearly three years, one week after the worst terrorist attack in the country's history.
Stock futures were mixed, implying little change at the opening of the Nasdaq Stock Market, the Standard & Poor's 500 and the Dow Jones industrial average.
The markets were set to respond to the day's biggest economic report, the August Consumer Price Index. It rose 0.1 percent from July, less of an increase than economists expected. Core prices, which exclude the volatile energy and food sectors, showed a 0.2 percent gain, in line with estimates.
A sharp decline marked the first trading day since the attack that destroyed New York's World Trade Center and damaged the Pentagon. But many market participants were somewhat reassured that the selloff didn't feel panicky in tone.
The Federal Reserve's latest half percentage point cut in interest rates seemed to signal that the government is ready to do its part to keep the economy buoyant, strengthening the argument of those who believe that the markets could come back soon.
Further encouragement could come from Tokyo's Nikkei index, which closed nearly 2 percent higher Tuesday after a 5 percent drop the day before. But European stocks were sharply lower in early trading amid fears of armed conflict and in response to the Wall Street selloff.
Complicating Tuesday's session is the fact that it's the first day of
Rosh Hashanah, the Jewish new year, and many market participants are spending the day at temple. Trading during the High Holy Days is traditionally lighter than usual, but the extraordinary current circumstances may change that.
The Dow Jones industrial average begins the session at 8,920.70 following a drop of 684.81, the largest one-day point decline in the indicator's more than century-old history. Nevertheless, the 7.1 percent fall is not even one-third of the biggest loss on a percentage basis, something that cheered some market observers.
The Nasdaq composite index starts at 1,579.55 after declining nearly 116 points, or just under 7 percent. The Standard & Poor's 500 is at 1,038.74 following an almost 54-point, or 5 percent, slide.
Treasury prices were mostly higher, with the benchmark 10-year note yield at 4.63 percent. The dollar strengthened the yen, but was weaker against the euro. Brent oil futures fell 8 cents to $28.30 a barrel in London.
Financial and travel services provider American Express (AXP: Research, Estimates) , whose headquarters building was severely damaged, said Monday the terrorist attacks will cause it to miss its third-quarter earnings and revenue estimates. American Express fell $4.76 Monday to $30.25.
Before the open, Computer Associates International (CA: Research, Estimates) said it expects the attacks to delay the technology sector's recovery and pointed to increased uncertainty ahead. The company's shares dropped $2.15 Monday to $25.45.
Oracle (ORCL: Research, Estimates), the No. 2 software maker, said in its quarterly conference call Monday that it expects fiscal second-quarter earnings to be flat at 11 cents a share, in line with current estimates. The company also said its software license revenue could be up to 15 percent lower from the same period one year earlier, citing business disruptions associated with the attacks. Oracle fell 43 cents to $10.58 in before-hours trading Tuesday.
AT&T's board still plans to meet later this week and will be looking at more than one proposal to buy its cable assets, a source familiar with the situation told CNNfn.com. Shares of AT&T (T: Research, Estimates) finished 13 cents lower at $17.52.
Among the companies scheduled to report quarterly results before trading begins is electronics retailer Best Buy (BBY: Research, Estimates) . It's forecast to have earned 38 cents a share in the second quarter ended in August, up from 36 cents a year earlier, according to the consensus of analysts surveyed by First Call. Best Buy dropped $6.05 to $48 Monday
After the closing bell, Linux system software maker Red Hat (RHAT: Research, Estimates) is expected to post its fiscal second-quarter results. The company, once one of the high flyers of the tech boom, is expected to post breakeven results, an improvement from the 1-cent-a-share loss reported in the year-earlier period. Red Hat shares were unchanged in before-hours trading Tuesday at $3.12. 
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