Dow Focused on Domestic News; Falls Likely

LONDON -- The Dow Jones Industrial Average (INDEX: ^DJI  ) is expected to open lower again this morning, according to the futures market. Weak domestic economic data and ongoing concerns over Greece and Spain are unlikely to provide much upward momentum, although a big fall seems unlikely.

Trade deficit figures for April are due to be published at 8:30 a.m. EDT and are expected to show that the gap between imports and exports grew from $46 billion to $50 billion last month. Weekly jobless claims figures are also due this morning but are forecast to remain unchanged from last week at 365,000.

In company news, Cisco Systems may fall in morning trade following a weak sales outlook for the current quarter, during which it only expects to post a 2% to 5% increase in sales, below analyst expectations of 7% growth. In Germany, shares in the networking giant fell by more than 8% in morning trade, following last night's earnings announcement.

Elsewhere, both the Hang Seng and Nikkei indexes closed lower last night following weaker-than-expected trade figures from China. Both exports and imports disappointed, raising concerns over a slowdown within the world's second-largest economy.

European markets rose slightly in early trading, but news that Spain is partly nationalizing the country's largest bank -- and that Greece has moved onto its third and probably final attempt to form a coalition government -- did nothing to boost confidence. By late morning, both France's CAC 40 and Germany's DAX were down, although the Spanish IBEX 35 beat the trend with a modest increase.

In London, the FTSE 100 (INDEX: ^FTSE  ) finished the morning down by around 0.5% as traders anticipated the Bank of England's decision to leave U.K. interest rates unchanged and stop its current quantitative easing program.

Solid results from BT Group (NYSE: BT  ) failed to lift the company's share price in London, and the former telecom monopoly is not the famous British blue chip company that prompted billionaire Warren Buffett to invest more than $1 billion. You can discover which British brand he did purchase and the price he paid in this latest free report.

Earnings data is due today from retailers Nordstrom (NYSE: JWN  ) and Kohl's Corp, while in the technology sector CA (Nasdaq: CA  ) is set to release its latest figures after the market closes tonight.

The Motley Fool is helping Britain invest. Better. Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is The Motley Fool's free report. We urge you to read the report today -- it may transform your wealth. Click here now to request your free, no-obligation copy.

Further investment opportunities:

Roland Head owns none of the shares mentioned in this article. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1884012, ~/Articles/ArticleHandler.aspx, 12/18/2014 5:40:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement