U.S. equity markets are signaling a slightly lower open to today's trading this morning, perhaps taking a cue from the European market reaction to a bond offering from Spain. Let's take a look at where futures markets were standing within the past hour.
|Dow Jones Industrial Average |
While Spain was able to sell more bonds than it expected today, skyrocketing borrowing costs are front and center and will likely be a major focus during European policymaker meetings next week. A stark contrast exists between surging borrowing costs abroad and U.S. treasury yields sitting near record lows, something that the Federal Reserve looks to maintain with yesterday's extension of its Operation Twist bond-buying program. Reports have surfaced that policymakers in Europe could begin asset purchases of their own to help drive down funding costs on their home turf. Specifically, it's been suggested that the soon-to-be-approved European Stability Mechanism could begin buying Italian and Spanish debt to help ease pressure from rising rates.
In other macro news this morning, reports on weekly jobless claims are released at 8:30 a.m. EDT, followed by 10 a.m. reports on both manufacturing activity from the Philadelphia Federal Reserve Bank and an update on existing-home sales.
Moving to individual company events, news surfaced yesterday evening that Dow component Johnson & Johnson
A red bath for Bed Bath
Away from the Dow, shares of home gadgetry retailer Bed Bath and Beyond
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Brenton Flynn owns shares of Amazon.com. The Motley Fool owns shares of Johnson & Johnson and Amazon.com. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson, Amazon.com, Pfizer, and Bed Bath & Beyond. Motley Fool newsletter services have recommended creating a diagonal call position in Johnson & Johnson. 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.