Wall Street May Trade Lower Again; Futures Drop

October 27, 2008 8:54 a.m. EST

New York, NY (AHN) - Futures dropped as investors lose confidence on reports that government may fail to prevent the economy from further slumping into recession. The stocks on Wall Street are set for a lower start on Monday.

At 8:13 a.m. EDT in New York, S&P futures were trading down by 22.30 points or 2.58 percent at 843.70 points, NASDAQ futures was moving up by 25.00 points or 2.10 percent at 1,166.50 points.

While, the Dow was trading up at 182.00 points or 2.20 percent at 8,079.00 points.

Oil futures rebounded on Monday as a light, sweet barrel for October delivery was trading down by $2.15 to $62 a barrel in electronic trading.

Investors will look closely at the auto sector as General Motors Corp. (GM) has been talking to merge with Chrysler LLC as Detroit's big two automakers are struggling to raise capital and to shore up their financial statements amid dropping auto sales.

A report on September new home sales is scheduled to release information at 10:00 a.m. ET.

In global markets, European shares lose grounds on Monday on reports on rising recession concerns and dropping oil rate is pulling down major energy companies.

Investors reacted negatively to the earnings report as the authorities in the region continue to infuse capital and find ways to bolster financial systems.

Asian markets closed down led by major indexes in the region on Monday on sentiment sentiment as countries face slower growth.

In currency trading, the yen changed hands at 92.45 yen per U.S. dollar in Asia on Monday, after it closed at 93.16 yen late Friday in New York.