Dow Jones Poised to Rebound From Yesterday's Losses

LONDON -- Stock index futures at 7 a.m. EST indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and the S&P 500 (SNPINDEX: ^GSPC  ) may each open 0.5% higher. Yesterday's falls shook CNN's Fear & Greed Index, which closed down to 79 from a previous close of 88 -- although the index remains in "extreme greed" territory.

This morning's economic calendar kicks off with December's CoreLogic home prices index at 8:30 a.m. EST, but the data highlight of the morning is likely to be January's ISM nonmanufacturing PMI, which is due at 10 a.m. EST. Consensus forecasts suggest that the index will read 55, down slightly from 55.7 in December but still showing steady growth.

Corporate earnings remain in full flow, and early results came from NYSE Euronext, which reported fourth-quarter earnings of $0.43 per share versus estimates of $0.40; Eaton, which reported ex-item EPS of $0.82, falling short of estimates of $0.93; and Emerson Electric, which met Wall Street expectations with earnings of $0.62 per share on revenue of $5.6 billion. Other premarkets big hitters are expected to include Kellogg, Sirius XM Radio, Knoll, TECO Energy, Cardinal Health, CME Group, and Becton Dickinson.

Yum! Brands could also be actively traded after the company issued a disappointing trading update last night, causing Yum's share price to fall nearly 6% in premarket trading this morning. Shares in Virgin Media (NASDAQ: VMED.DL  ) are also likely to rise sharply after the company revealed it is in takeover talks with John Malone's Liberty Global. Virgin Media shares were up 16% in London trading at 7:20 a.m. EST.

After the bell tonight, several high-profile stocks will report, including Disney, Expedia, and Zynga, which is expected to report a loss of $0.03 per share for the fourth quarter.

European markets
European markets moved decisively higher this morning, welcoming news that the eurozone composite PMI rose to 48.6 in January, up from 47.2 in December. At 7:30 a.m. EST, the DAX was up 0.32%, the CAC 40 was up 1%, the FTSE MIB was up 1.2%, and the IBEX 35 was up 1.7%. In London, the FTSE 100 (FTSEINDICES: ^FTSE  ) was 0.63% higher, helped by strong gains from ARM Holdings and BP after both companies released strong fourth-quarter results. ARM was up 3.6% to 924.5 pence, having earlier touched an all-time high of 961 pence.

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 (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.

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: 2235632, ~/Articles/ArticleHandler.aspx, 10/25/2014 7:57:17 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...


Advertisement