Dow Rebound Set to Continue Today

LONDON -- At 7:50 a.m. EST, stock index futures suggested an opening gain of 0.5% for both the Dow Jones Industrial Average (INDEX: ^DJI  ) and S&P 500 (INDEX: ^GSPC  ) . Both indexes closed higher on Friday, and stocks could be poised for a rebound in the run-up to Thanksgiving amid hopes that President Obama will deliver a budget agreement with Congress that will avert the risks posed by the fiscal cliff.

Housing features heavily on the economic calendar today. Existing-home sales for October are due at 10 a.m. EST and are expected to remain unchanged from September at 4.75 million, according to a Reuters survey. November's homebuilders' index is also due at 10 a.m. EST and is expected to rise to 42, up from 41 in October.

Corporate earnings
With no other significant economic data due today, investors are likely to pay close attention to corporate-earnings news. Lowe's (NYSE: LOW  ) reported an increase in third-quarter sales and profit this morning. Sales rose by 1.9% to $12.1 billion in the last quarter, while earnings per share matched analysts' expectations at $0.35, up from $0.18 for the same period last year. Lowe's expects to benefit from rebuilding activity post-Sandy, but it left its full-year guidance for flat sales and earnings of $1.64 per share unchanged.

Other companies due to report quarterly results today include Krispy Kreme, Agilent, and Urban Outfitters. In other news, networking giant Cisco Systems has said it will buy privately held cloud-networking specialist Meraki for $1.2 billion. Cisco stock was up slightly in German trading this morning and may be in demand when U.S. markets open.

European markets
In Europe, markets rose strongly this morning as optimism builds that the fiscal cliff will be resolved by the end of the year. At 7:45 a.m. EST, the DAX was up 0.16%, the CAC was up 0.28%, the FTSE MIB was up 1.25%, and the IBEX was down 0.6%. In London, the FTSE (INDEX: ^FTSE  ) was down just a few points at 8 a.m. EST. Topping the leaderboard was Barclays, which was up by 2.3% after broker Goldman Sachs upgraded the bank to a "buy" rating.

Billionaire investor Warren Buffett is not a Barclays shareholder, 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.

Roland Head does not own shares in any of the other companies mentioned in this article. The Motley Fool owns shares of Cisco Systems. Motley Fool newsletter services have recommended writing covered calls on Lowe's Companies. 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: 2118673, ~/Articles/ArticleHandler.aspx, 10/27/2016 11:19:33 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 18,197.66 -1.67 -0.01%
S&P 500 2,136.47 -2.96 -0.14%
NASD 5,233.49 -16.78 -0.32%

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

10/27/2016 11:04 AM
^DJI $18193.10 Down -6.23 -0.03%
^FTSE $6969.72 Up +11.63 +0.17%
FTSE 100 CAPS Rating: No stars
^GSPC $2136.62 Down -2.81 -0.13%
S&P 500 INDEX CAPS Rating: No stars
LOW $67.41 Up +0.04 +0.06%
Lowe's CAPS Rating: ****