Monday, May 7, 2007

U.S. Stock-Index Futures Drop; Yahoo Falls, Armor Holdings Gains in Europe

(Bloomberg) -- U.S. stock-index futures were little changed as investors speculated Federal Reserve Chairman Ben S. Bernanke and other policy makers are unlikely to cut interest rates to revive a slowing economy when they meet this week.

There won't be a rate cut ``anytime soon and investors are waking up to this reality,'' said Maurizio Binelli, a strategist at Abaxbank SpA in Milan. ``The risk of a slowdown in the economy is there and Bernanke isn't going to be as activist as his predecessor. The Fed brought rates to a neutral level and maybe went too far.''


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