Dow May Open Higher on Earnings Hopes

LONDON -- Stock index futures at 7 a.m. EST indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may open up by a nominal three points this morning, while the S&P 500 (SNPINDEX: ^GSPC  ) may open up by 1.6 points.

Today's calendar is packed with major corporate earnings and key economic data. Kicking off the economic reports at 8:30 a.m. EST are the latest initial jobless claims, with consensus forecasts suggesting 368,000 new claims, down slightly from 371,000 the previous week. Also due at 8:30 a.m. EST are December's housing starts, which are expected to have risen to 883,000 from 861,000 in November. Finally, at 10 a.m. EST, the Philly Fed Manufacturing Survey for January is due, with an expected reading of five, down from 8.1 in December.

Companies due to report earnings today include Bank of America, BlackRock, Intel, Capital One, and Citigroup. Early reports came from Huntington Bancshares, UnitedHealth Group and Fifth Third Bancorp, all of which reported earnings in-line with or better than expectations.

Boeing stock was nearly 3% lower in premarket trading and is likely to be actively traded today after the Federal Aviation Administration grounded the U.S. 787 fleet. The decision was also adopted by the European Aviation Safety Agency and Japan's Transport Ministry. It is the first time the FAA has chosen to ground an airplane model since 1979 and means that the vast majority of the world's 787 fleet is now grounded.

European markets
European markets were little changed this morning, with no major news from the eurozone region. However, there was some encouragement for traders after yields fell at Spain's latest bond auction. Portugal also announced that it intends to return to the bond markets sooner than expected and is planning an auction of five-year bonds later this month.

At 7:15 a.m. EST, the DAX was flat, the CAC 40 was up 0.9%, the FTSE MIB was up 0.9%, and the IBEX 35 was up 0.5%. In London, the FTSE 100 (FTSEINDICES: ^FTSE  ) was up by a nominal nine points after recovering early losses caused when mining giant Rio Tinto announced a $14 billion noncash impairment charge and the immediate departure of CEO Tom Albanese this morning. Rio shares fell nearly 4% initially but rebounded strongly and were down just 1.7% by midday in London.

Billionaire investor Warren Buffett rarely invests outside the U.S., but he did recently invest $1 billion in an FTSE 100 blue-chip brand, expanding his stake in the company to more than 5%. The business concerned is a famous British name with global expansion potential -- and you can discover the identity of the company and the price he paid in this special exclusive report. Best of all, the report is free -- so download it today while it's still available.


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

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.

Compare Brokers

Fool Disclosure

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: 2200857, ~/Articles/ArticleHandler.aspx, 9/29/2016 11:25:15 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...

Today's Market

updated 2 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes