(Corrects to remove reference to the oil inventories in last
paragraph, which will be released on Thursday. The reference
also appeared in an earlier report.)
* Economic worry casts pall over stock market
* Hedge fund closure rattles financial stocks
* Auto sales, factory orders, Beige Book on tap
* U.S. oil inventory data eyed
(Rewrites first paragraph, updates prices)
By Ellis Mnyandu
NEW YORK, Sept 3 (Reuters) - U.S. stocks were poised to
slip at the open on Wednesday as investors fretted about the
economy's health and the outlook for the beleaguered financial
services sector.
News of the demise of a hedge fund partly owned by Lehman
Brothers <LEH.N> fueled caution over financial shares. In
addition, a brokerage reduced its profit view for Goldman Sachs
<GS.N>, sending its stock down about 1 percent before the
bell.
Share of Lehman Brothers <LEH.N> gained 2.5 percent
following a report in South Korea's Daily Chosun Ilbo newspaper
that top European bank HSBC Holdings <HSBA.L><0005.HK> is
among among potential buyers of the fourth-ranked U.S.
investment bank.
Even so, financials looked set to weigh on sentiment,
adding to worries about the economy. Analysts said the drop of
nearly 30 percent in oil prices since their July record
suggested a slowing global economy, which would stifle profit
growth.
"There are concerns about growth around the world. I think
that's what's pressuring things here," said Peter Boockvar,
equity strategist at Miller Tabak & Co in New York. "I think
people are waking up to the fact that the drop in oil is not
happening in a vacuum. It is happening in the context of growth
slowing around the world."
S&P 500 futures <SPc1> fell 3.20 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> fell 19
points and Nasdaq 100 <NDc1> futures declined 4.50 points.
In Europe, RBS cut its stock rating of Barclays Plc
<BARC.L> , saying that the British lender may need to raise
more capital.
That downgrade hurt European equity averages, along with
data that showed the euro zone's economy moved half way into
recession in the second quarter.
Goldman Sachs shares fell to $163.85 before the bell after
Credit Suisse cut its third-quarter profit view on the Wall
Street bank. []
Hedge fund manager Ospraie Management LLC said it will
close its flagship fund after it plunged 27 percent in August
due to losses in energy, mining and natural resources equity
holdings damaged stocks in Europe where major averages slid 1
percent or more.
Lehman owns 20 percent of Ospraie.
Wednesday's economic calendar includes the Federal Reserve
release of its Beige Book on regional economic conditions at 2
p.m. (1800 GMT). The report is likely to reinforce the view of
weak growth and elevated price pressures.
Data for factory orders in July is due at 10 a.m. (1400
GMT). Major U.S. auto makers are also in focus as they prepare
to post August sales reports.
(Editing by Kenneth Barry)
