Stock prices head toward lower opening By MADLEN READ, AP Business Writer

Stock prices head toward lower opening By MADLEN READ, AP Business Writer
12 minutes ago



NEW YORK - Stocks headed toward a lower opening Thursday, suggesting Wall Street is taking few chances amid concerns that squeezed credit is hurting the economy and uncertainty about the Federal Reserve's intentions.

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Investors were also awaiting the Commerce Department's estimate of second-quarter gross domestic product. Economists forecast that GDP growth will read 4.1 percent, a faster rate than the department's July estimate of 3.4 percent.

On Wednesday, the Dow Jones industrials gained nearly 250 points after losing about 280 points in the prior session, as investors grew more optimistic about chances for an interest rate cut and sought out bargains. Fed Chairman Ben Bernanke, expected to speak in Wyoming on Friday, said in a letter to Sen. Charles Schumer, D-N.Y., that Fed policymakers are "prepared to act as needed" if the market's turmoil damages the economy.

In premarket trading Thursday, stock futures indicated that Wall Street was likely to pull back again, with investors wanting to collect some of their gains from Wednesday.

Dow futures expiring in September fell 47, or 0.35 percent, to 13,264, while Standard & Poor's 500 index futures fell 6.50, or 0.44 percent, to 1,458.90. Nasdaq 100 index futures fell 3.75, or 0.19 percent, to 1,957.25.

In corporate news, H&R Block Inc. reported that its first-quarter loss was bigger than during the same period last year, as it struggled with its mortgage lending arm.

The dollar was higher against most other major currencies, while gold prices fell.

Light, sweet crude rose 37 cents to $73.88 a barrel in premarket electronic trading on the New York Mercantile Exchange.

After Wall Street's big jump Wednesday, Japan's Nikkei stock average rose 0.88 percent, Hong Kong's key index rose 2.02 percent, and China's Shanghai Composite Index rose 1.14 percent.

In Europe, Britain's FTSE 100 rose 0.38 percent, Germany's DAX index rose 0.10 percent, and France's CAC-40 rose 0.63 percent.

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On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com