Oil Prices, Iraq Weigh on Markets

NEW YORK – Stocks are set to open lower Tuesday, as higher oil prices and reaction to President Bush’s speech on Iraq dragged markets down worldwide.

Dow Jones futures declined 18 points recently, Nasdaq futures fell 8 points, and S&P futures were 4.7 points lower.

In a prime-time speech Monday, Bush outlined a five-part plan for U.S. strategy in Iraq: give power to a sovereign government, re-establish security, rebuild infrastructure, enlist international help and assist toward elections.

In London, the FTSE 100 Index was down 27.6 points recently, to 4406.3; markets in France and Germany also were trading lower. In Japan, the Nikkei Stock Average lost 138.71 points, or 1.3 percent, to close at 10,962.03.

In U.S. corporate news, SBC Communications Inc. and the Communications Workers of America tentatively agreed to a five-year contract following a four-day walkout by the union. The contract will provide for wage increases, job guarantees and some rehiring. SBC will continue to fully fund health-care benefits, although workers will see increases in co-payments for medical services and prescription drugs.

After the bell Monday, Medtronic Inc., citing market-share increases and growth in all of its operating segments, reported fourth-quarter net income rose 17 percent to $568.9 million, or 47 cents a share. Novell Inc. returned to a second-quarter profit excluding items, on stronger maintenance revenue and lower costs. Verisign Inc. said it will acquire German-based Jamba for about $273 million in cash and stock. The company sees the deal generating $70 million in incremental revenue in the second half and adding to 2005 earnings.

Also Tuesday, HJ Heinz Co. is expected to report fourth-quarter earnings of 58 cents a share and Jos A. Bank Clothiers Inc. first-quarter earnings of 40 cents a share. After the market closes, La-Z-Boy Inc. is expected to report fourth-quarter earnings of 43 cents a share. Semtech Corp., Tivo Inc. and Williams-Sonoma Inc. also are expected to report Tuesday.

The Conference Board is due to release the May consumer confidence index at 10 a.m. EDT. Ellen Beeson, an economist at the Bank of Tokyo-Mitsubishi in New York, calls for the consumer confidence index to move up to 93.7. The National Association of Realtors is due to release the existing home sales report at 10 a.m. Economists look for little change in existing home sales in April, estimating that sales will hold at a 6.50 million annual rate compared to 6.48 million in March.

After a bumpy session, U.S. stocks ended mixed with oil drillers such as Halliburton Co. and Schlumberger Inc. reveling in continued high oil prices, while a negative ruling for the tobacco industry put pressure on the Dow Jones industrial average. After dipping in and out of negative territory, the Dow settled down for the session, dropping 8.31, or 0.08 percent, to 9,958.43. The Nasdaq composite index gained 10.90 points, or 0.57 percent, to 1923, while the Standard & Poor’s 500 index ended the session up 1.78, or 0.16 percent, to 1,095.34.