Dow Futures Slip as Microsoft Hunts for a New Bosshttp://www.fool.com/investing/general/2013/08/26/dow-futures-slip-as-microsoft-hunts-for-a-new-boss.aspx Demitrios Kalogeropoulos
August 26, 2013
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
The Dow Jones Industrial Average (DJINDICES: ^DJI) is poised to start the week in the red. Stock futures as of 7:40 a.m. EDT suggest a modest 19-point dip at the opening bell as the guessing game continues over when the Federal Reserve might begin tapering its bond-buying program.
Overnight, Asian markets rose as new economic data out of China pointed to stronger economic growth. The Shanghai Composite index leapt 1.9% after the government said the world's second-largest economy is set to meet its 7.5% annual growth target this year.
Is it bad news or good news?
While many news sites reported that home sales had "plunged," that's an exaggeration. Yes, the housing data showed a 13.4% fall from June to July. However, this report comes from a survey with a small sample size, which is why big revisions to the data are common. This month's figure came with a 14.5% standard error, meaning that home sales could possibly have fallen by as much as 28% month to month -- or they could have even risen slightly.