Dow Jones May Open Higher as Apple Drags on S&P 500

LONDON -- Stock index futures as of 7 a.m. EST indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may open up by a nominal six points this morning, while the S&P 500 (SNPINDEX: ^GSPC  ) may open three points lower as Apple's disappointing results threaten to hold back the index from new highs. Bullish sentiment edged even higher yesterday: The CNN Fear & Greed Index closed at 92 last night, well into "extreme greed" territory.

The economic calendar is busier today that it has been all week, with several key data releases expected this morning. First up, at 8:30 a.m. EST, are the latest jobless-claim figures. Initial weekly jobless claims are expected to have risen to 360,000, up from 335,000 the previous week. At 9 a.m. EST, the Market PMI for January is due; consensus forecasts suggest a drop to 53, down from 54 in December. Finally, at 10 a.m. EST, December's leading indicators are expected to show a gain of 0.4%, up from -0.2% in November.

Corporate earnings
(NASDAQ: AAPL  ) stock is likely to be actively traded this morning after the company reported its most recent quarterly earnings after the closing bell last night. Despite reporting 18% revenue growth, Apple missed its revenue estimates and reported flat quarterly profits of $13.1 billion, suggesting that its profit margins are being squeezed. Although Apple sold 47.8 million iPhones over the Christmas period, this was below consensus forecasts for sales of 50 million units. Apple stock was down more than 9% in premarket trading this morning, and if this drop holds when markets open, nearly $45 billion could be wiped off the company's market value.

It's not all about Apple, however. A number of other big names are due to report quarterly earnings today, including 3M, Bristol-Myers Squibb, Lockheed Martin, Microsoft, Raytheon, and AT&T. Starbucks, Xerox, and Union Pacific are also expected to report, while Netflix stock may soar after rising 37% in premarket trading following its earnings release last night.

European markets
European markets were little changed this morning, with Apple's bad news weighing slightly on sentiment, especially in the tech sector. At 8 a.m. EST, the DAX, the CAC 40, the FTSE MIB, and the IBEX 35 were all changed less than a tenth of a percent. In London, the FTSE 100 (FTSEINDICES: ^FTSE  ) was up by 0.36%, pulled higher by a 3% rise for chemicals business Croda International. Cement giant CRH was also a strong performer, up by 2.9%, while mobile-phone group Vodafone was up 2.8%

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 (1) | Recommend This Article (2)

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.

Add your comment.

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: 2212588, ~/Articles/ArticleHandler.aspx, 9/29/2016 5:01:42 AM

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 7 hours ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

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

Related Tickers

9/28/2016 4:00 PM
AAPL $113.95 Up +0.86 +0.76%
Apple CAPS Rating: ****