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



Dow Futures Drop Ahead of Jobs Report

LONDON -- Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may open down by 0.38% this morning, while the S&P 500 (SNPINDEX: ^GSPC  ) may open 0.4% lower.

European stock markets continued to move lower this morning as new figures confirmed that the eurozone economy shrank by 0.2% in the first quarter of this year, pushing the single-currency zone back into recession. Worries also rose that stronger U.S. data may mean that the Federal Reserve will start to scale back its stimulus program as soon as September. At 7:15 a.m. EDT, the FTSE 100 was down by 1.4%, while Germany's DAX was 1.1% lower. In a surprise announcement this morning, the European Central Bank said that Latvia's application to join the euro had been successful, although it warned that "a significant part of the banking sector" relies on foreign deposits, especially from Russia. This has prompted fears that Latvia might eventually experience similar problems to those of Cyprus.

Today sees the publication of the first of three rounds of U.S. employment data that are due this week. The ADP employment survey for May is due at 8:15 a.m. EDT and is expected to show that private-sector employment rose by 170,000 in May, up from 119,000 in April. Next, at 8:30 a.m. EDT, first-quarter productivity data is expected to show a 0.5% rise in productivity, compared with 0.7% in the final quarter of 2012. Finally, at 10 a.m. EDT, the ISM nonmanufacturing survey for May is expected to have risen to 54, up from 53.1 in April, while factory orders are expected to have risen by 1.6% in April, compared with a fall of 4.9% in March.

In corporate news, companies due to report before the opening bell include Cyberonics and Hovnanian Enterprises, which is expected to report a second-quarter loss of $0.05 per share, according to consensus forecasts. VeriFone Systems, Vera Bradley, and Greif are among those due to report after markets close.

Apple stock may edge lower when markets open following a ruling from the U.S. International Trade Commission that could prevent Apple from importing older models of the iPhone and iPad due to infringement of a patent owned by smartphone rival Samsung. Apple shares are 0.8% lower in premarket trading, but the firm has said it will appeal the ITC ruling, which will not come into force for 60 days.

Finally, let's not forget 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 about 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 (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.

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: 2472297, ~/Articles/ArticleHandler.aspx, 10/1/2016 10:08:43 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 12 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

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

9/30/2016 5:01 PM
^DJI $18308.15 Up +164.70 +0.91%
^GSPC $2168.27 Up +17.14 +0.80%
S&P 500 INDEX CAPS Rating: No stars