Dow Set to Rise on Euro Calm

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

LONDON -- The Dow Jones Industrial Average (INDEX: ^DJI  ) is likely to rise when markets open this morning, according to current premarket trading.

Although uncertainty over the eurozone situation persists, renewed vows of support from G8 leaders have stabilized markets somewhat. In the absence of any other developments, the European situation may remain quiet until May 23, when EU leaders will hold a summit in Brussels to discuss the crisis.

On a similar note, recent comments from Chinese premier Wen Jiabao have heightened traders' expectations that further stimuli might be applied to the Chinese economy in an attempt to revitalize slowing growth.

Most European markets rose in this morning's trading sessions, with the FTSE 100 (INDEX: ^FTSE  ) up by 0.7% just before noon and the CAC 40 and DAX indexes achieving similar gains.

In London, the biggest rise came from Man Group, which gained more than 6% on news that it has acquired hedge fund research specialist FRM Holdings in a deal involving limited initial cash outlay.

Barclays (NYSE: BCS  ) also experienced a surge in late morning, following the announcement that it will sell its 20% stake in BlackRock for $6.1 billion. Not all banks fared well, however. In Spain, shares in Banco Santander (NYSE: STD  ) fell following news that the bank's U.K. unit experienced abnormally high withdrawal levels last week.

With no economic data due at home today and a temporary state of calm in Europe, attention is likely to be on company news. One big story that could drive trading is the news that one of China's largest Internet companies, Alibaba Group, has agreed to repurchase the 20% stake held in the company by Yahoo! (Nasdaq: YHOO  ) in preparation for a possible IPO. The deal will give Yahoo! a cash influx of about $6.3 billion and around $800 million in new Alibaba preferred stock. The cash component of this $7.1 billion deal is equivalent to one-third of Yahoo!'s current market cap and is 20% more than its total revenue in 2011, so it's likely to attractor investors' interest.

Although billionaire investor Warren Buffett has famously avoided investing in tech stocks, he did recently venture outside his traditional U.S. domain by investing more than $1 billion in a leading British blue-chip brand with global expansion potential. You can discover the identity of the company and the price he paid in this special free report.

Earnings reports due today include Lowe's Companies, Campbell Soup, and Krispy Kreme. Facebook shares are also likely to see continued trading as the dust settles following Friday's IPO.

Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is The Motley Fool's latest report. We urge you to read it today -- your wealth could be transformed. Click here now to request your free, no-obligation copy. The Motley Fool is helping Britain invest. Better.

Further investment opportunities:

Roland Head owns no shares mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (1) | Recommend This Article (5)

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: 1890616, ~/Articles/ArticleHandler.aspx, 10/24/2016 3:06:36 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 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

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

10/21/2016 4:47 PM
^DJI $18145.71 Down -16.64 -0.09%
^FTSE $7020.47 Down +0.00 +0.00%
FTSE 100 CAPS Rating: No stars
BCS $8.92 Up +0.01 +0.11%
Barclays CAPS Rating: ****
SAN $4.67 Up +0.03 +0.65%
Banco Santander Ce… CAPS Rating: *****
YHOO $42.17 Down -0.21 -0.50%
Yahoo CAPS Rating: **