Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Dow May Fall as Growth Fears Return

LONDON -- Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may fall 0.61% this morning to give back most of yesterday's big gains, while the S&P 500 (SNPINDEX: ^GSPC  ) is expected to open 0.62% lower, wiping out the progress it made yesterday. CNN's Fear & Greed Index has stabilized at 77, rising from yesterday's close of 75 and ending a week-long decline.

European markets reversed yesterday's gains this morning as fears grew over the possibility that the U.S. Federal Reserve might soon begin to taper its bond-buying program. Strong U.S. economic data has raised concerns that the country's growth could soon trigger cutbacks to monetary stimulus, which is widely seen as having helped to fuel recent market gains. As of 7:10 a.m. EDT, the FTSE 100 is down 1.5%, while Germany's DAX is down by 1.7%.

Investor sentiment may also have been cooled by widespread cuts to global growth forecasts by the Organization for Economic Cooperation and Development. In its latest report, published today, the OECD cut its forecast for global growth in 2013 from 3.4% to 3.1%, reduced its forecast for China from 8.5% to 7.8%, and lowered its U.S. growth forecast from 2% to 1.9%. The OECD also said it expects the eurozone economy to contract by 0.6% this year, rather than the 0.1% previously expected. No major economic reports or corporate earnings are due in the U.S. today, so the OECD report could influence this morning's trading.

Companies that are due to report before this morning's opening bell include The Fresh Market (UNKNOWN: TFM.DL  ) , which reported a 12.9% increase in net sales and a 14.6% rise in diluted earnings per share to $0.46 in its first-quarter results this morning. Fresh Market said that comparable-store sales rose by 3%, while net income rose to $22.1 million, up from $19.3 million during the same period last year. Other companies reporting before the bell include Michael Kors, RBC Bearings, renewable-energy firm Trina Solar, and Movado, while Tilly's and Avago Technologies are expected to report after the close tonight.

Bank of America could also see active trading when markets open: It's down by 1.2% in premarket trading.

Finally, let's not forget that the Dow's daily movements can add up to serious long-term gains. Indeed, Warren Buffett recently wrote, "The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions." If you, like Buffett, are convinced of the long-term power of the Dow, you should read "5 Stocks To Retire On." Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.

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: 2456964, ~/Articles/ArticleHandler.aspx, 9/27/2016 11:56:05 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 Moments ago Sponsored by:
DOW 18,182.97 88.14 0.49%
S&P 500 2,154.33 8.23 0.38%
NASD 5,290.16 32.67 0.62%

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

9/27/2016 11:40 AM
^DJI $18181.60 Up +86.77 +0.48%
^GSPC $2154.08 Up +7.98 +0.37%
S&P 500 INDEX CAPS Rating: No stars
TFM.DL $0.00 Down +0.00 +0.00%
The Fresh Market CAPS Rating: ***