Dow May Open Lower on Retail Sales Report

LONDON -- Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may open down by 0.29% this morning, while the S&P 500 (SNPINDEX: ^GSPC  ) may open 0.36% lower. CNN's Fear & Greed Index closed up at 81 on Friday, firmly into "extreme greed" territory.

European markets moved lower this morning, ahead of today's U.S. retail sales figures, which are due at 8:30 a.m. EDT and are expected to show that retail sales fell by 0.6% in April, following a 0.4% fall in March. The latest business inventories report is due at 10 a.m., and is expected to show that inventories rose by 0.2% in March, after rising 0.1% in February. New data from China's National Bureau of Statistics showed that industrial output rose by 9.3% in April and retail sales rose by 12.8%, compared to the same period last year. Although strong, the results were slightly below analysts' expectations, according to a Bloomberg survey.

At 7 a.m. EDT, the FTSE 100 was down 0.24%, with emerging markets bank Standard Chartered leading the fallers and sliding 4.2%, after it emerged that short-selling fund Muddy Waters, which is run by Carson Block, has built up a short position on the bank's debt. Block believes the quality of Standard Chartered's assets is worsening, according to a CNN report. Germany's DAX was 0.4% lower, the Spanish IBEX 35 was down 1.3%, and the Italian FTSE MIB was down 0.5%, despite this morning's successful 8 billion euro auction of Italian government bonds.

First-quarter earnings season is coming to a close in the U.S., but companies due to report results today include Renren, Take-Two Interactive Software, and Dillard's, all of which are expected to report after the close. Other stocks that may be actively traded today include Tesla Motors -- the company's share price is up by 126% so far this year and rose by 40% last week, so further volatility could be likely. Shares in Corning were 1.9% higher in pre-market trading after Barclays lifted its recommendation on the shares to overweight, while Yum! Brands may slip after the chain -- which owns KFC and Pizza Hut -- reported disappointing April sales in China.

Finally, let's not forget that 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.

link


Read/Post Comments (0) | Recommend This Article (0)

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.

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: 2425615, ~/Articles/ArticleHandler.aspx, 12/21/2014 5:49:48 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...


Advertisement