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



Euro Uncertainty Tops Dow Agenda

LONDON -- After closing down by 25 points last night, the Dow Jones Industrial Average (INDEX: ^DJI  ) is expected to open up by a similar amount this morning, according to futures markets.

The morning will start with the latest housing starts and building permits data. A Reuters survey suggests an increase in new starts from 717,000 in April to 720,000 in May, with housing permits rising from 723,000 to 728,000. Monthly job opening data for April is due at 10 a.m. EDT, and traders will also be interested in the outcome of JPMorgan Chase CEO Jamie Dimon's second visit to Capitol Hill. Dimon is due to testify to the U.S. House Financial Services Committee, which is expected to be a more critical audience for Dimon than the Senate Banking Committee proved to be.

Economic news will continue to dominate the agenda. The Federal Open Market Committee's two-day meeting to discuss interest rates starts today, and most analysts are expecting the FOMC to announce a new round of Operation Twist when the meeting concludes tomorrow. In Europe, hopes are high that Greece will announce the successful formation of a new coalition government today, while the communique issued by the G20 summit last night suggests that European governments might be moving toward greater banking and fiscal union. However, concrete developments are unlikely before the next EU summit at the end of June.

Spain tested the appetite of the bond markets this morning with an auction of 12-month and 18-month bonds. It was able to sell the full 3 billion euro allocation but was forced to pay an average yield of 5.07% for 12 months and 5.1% for 18 months, up from 2.98% and 3.3%, respectively, at the last auction. Such interest rates are widely seen as unsustainable and raise concerns over the yields that will be demanded by the bond markets when Spain attempts to sell longer-dated debt on Thursday. The yield on existing Spanish 10-year debt is currently 7.09%, and Spain's situation wasn't helped by this morning's announcement that the full results of its banking audit will now be delayed until September. The preliminary results of the audit are due this week, possibly today.

European markets were broadly positive this morning. At 7 a.m. EDT, the FTSE 100 (INDEX: ^FTSE  ) was up by 0.8%, the DAX by 0.4%, and the CAC 40 by 0.1%. Spain's IBEX 35 was up by 1.4%, Italy's FTSE MIB by 1%, and the Greek Athex Composite Share Price Index was also stronger, up by 1.7%.

In company news, Oracle (Nasdaq: ORCL  ) may be in demand today after the software giant released strong quarterly figures after the bell on Monday. FedEx (NYSE: FDX  ) is also due to release quarterly results today, with analysts expecting earnings of $1.95 per share on revenue of $11.22 billion. Barnes & Noble (NYSE: BKS  ) is expected to post a loss of $0.92 per share, despite a 2.1% increase in like-for-like sales.

Finally, if you'd like to know about a U.K. blue-chip share in which billionaire investor Warren Buffett recently expanded his holding, then take a look at this special free report. It will be in your inbox in seconds and contains full details of Buffett's latest U.K. investment.

Are you looking to profit from this uncertain economy? "Ten 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 does not own shares in any of the companies mentioned. The Motley Fool owns shares of JP Morgan Chase and Oracle. Motley Fool newsletter services have recommended buying shares of FedEx. Motley Fool newsletter services have recommended writing puts on Barnes & Noble. 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 (0) | Recommend This Article (3)

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: 1916881, ~/Articles/ArticleHandler.aspx, 5/24/2016 5:51:48 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...

Roland Head

Today's Market

updated 8 hours ago Sponsored by:
DOW 17,492.93 -8.01 -0.05%
S&P 500 2,048.04 -4.28 -0.21%
NASD 4,765.78 -3.78 -0.08%

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

5/23/2016 4:35 PM
^DJI $17492.93 Down -8.01 -0.05%
^FTSE $6176.59 Up +40.16 +0.65%
FTSE 100 CAPS Rating: No stars
BKS $11.46 Down -0.07 -0.61%
Barnes & Noble CAPS Rating: *
FDX $162.04 Up +0.41 +0.25%
FedEx CAPS Rating: ****
ORCL $39.18 Down -0.23 -0.58%
Oracle CAPS Rating: ****