Dow May Open Higher After Breaking 15,000 Barrier

LONDON -- Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may open up by 0.1% this morning, after closing above 15,000 for the first time ever yesterday. The S&P 500 (SNPINDEX: ^GSPC  ) may open 1.1 points higher, after it too closed at a new record high last night. CNN's Fear & Greed Index closed up five points at 78 on Tuesday, indicating "extreme greed" sentiment.

In Europe, markets made broad-based moves higher this morning, helped by new official trade data from China, which reported a 14.7% rise in exports and a 16.8% increase in imports, although Reuters reported that a number of analysts had raised concerns about the accuracy of the data. There was also more good news from Germany, where industrial output rose by 1.2% in March, beating expectations.

No major economic reports are due in the U.S. today, so investors' attention will remain on corporate earnings. Companies due to report results before markets open this morning include Wendy's and AOL, which is expected to report earnings of $0.33 per share, according to Reuters. Cognizant Technology Solutions may rise when markets open -- earlier this morning, the outsourcing and consulting firm reported an 18% increase in first-quarter revenue, and a rise in net income to $0.93 per share, up from $0.79 for the same period last year. Cognizant said that the firm had experienced a 23% increase in activity in its European business.

Companies reporting after the close tonight include Groupon and Tesla, both of which are likely to attract strong interest from investors. Also due to report are News Corp., CF Industries Holdings, and Green Mountain Coffee Roasters.

Stocks that could be actively traded include Marathon Oil, which reported after the closing bell yesterday and was 1.7% lower in pre-market trading this morning. Marathon's quarterly profits dropped to $0.54 per share from $0.59 for the same period the previous year, despite its production output hitting the top end of the company's estimates. Shares in Whole Foods Market were 8.1% higher in pre-market trading, after the firm reported strong results last night, while Electronic Arts was up by 7.9% in early trading, after its 2014 forecast beat Wall Street expectations.

Finally, let's not forget the Dow's daily movements can add up to some 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.


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10/24/2016 4:56 PM
^DJI $18223.03 Up +77.32 +0.43%
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