Dow Futures Edge Lower As Eurozone Escapes From Recession

Stock index futures indicate that the Dow Jones and S&P 500 may open lower this morning, as investors sit out the holiday season and wait for greater clarity from the Federal Reserve.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

LONDON — Stock index futures at 7am ET indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI) may open down by 0.08% this morning, while the S&P 500 (SNPINDEX: ^GSPC) may open down 0.12%. CNN’s Fear & Greed Index return to neutral yesterday, reflecting investors’ current mixed attitudes to the market.

European markets made modest gains this morning, after new figures showed that the eurozone’s 18-month double-dip recession has ended with GDP growth of 0.3% during the second quarter, beating expectations for 0.2% growth. The region’s two largest economies, Germany and France, grew by 0.7% and 0.5% respectively, meaning that France has also escaped from its recession, although the French unemployment rate remained at a record high of 11%, raising some doubts over the solidity of its recovery. At 7am ET, the FTSE 100 was up 0.05%, the DAX was up 0.12% and the CAC 40 was up 0.29%.

In the US today, July’s producer price index is due at 8.30am, and is expected to show that producer prices rose by 0.3% during July, after gaining 0.8% during June. The likely outcome of the Federal Reserve’s September meeting may also be in focus, after Atlanta Fed President Dennis Lockhart said that bond-buying might reduce from September, but that this should be a “cautious first step”, as economic data remained too mixed to commit to a fixed plan.

Companies due to report earnings before the open today include Applied Industrial Technologies, which reported full-year earnings of $2.78 per share on sales of $2.5bn. Retailer Macy’s is expected to report second-quarter earnings of $0.78 per share on revenue of $6.3bn, while Deere is expected to report fiscal third-quarter earnings of $2.17 per share, on revenue of $9.2bn. Cisco Systems is scheduled to report after markets close tonight, and consensus forecasts are suggesting that the networking equipment manufacturer will report earnings of $0.51 per share on revenue of $12.4bn.

Other stocks that may be actively traded include Apple, which rose by 4.8% yesterday, after activist investor Carl Icahn disclosed a sizeable stake in the company. Apple shares were up by a further 1.2% in pre-market trading this morning. Cree, which reported earnings yesterday, fell by 15% in pre-market trading this morning as investors digested the LED manufacturer’s downgraded earnings forecasts.

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.

> Roland does not own shares in any of the companies mentioned in this article.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Investing Articles

Is this one of the FTSE 100’s best-value growth shares?

Looking for great-value recovery shares to buy today? Based on City forecasts, this could be one of the best that…

Read more »

Investing Articles

Will the Tesco share price hit a 10-year high in 2024?

Up from 200p less than two years ago, the Tesco share price has enjoyed impressive growth lately. Now I'm considering…

Read more »

Electric cars charging in station
Investing Articles

Where will Tesla stock be in 5 years? Here’s what the experts say

The analysts' outlook for Tesla stock in the next few years seems to be all over the place, as the…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

Nearing its 12-year low, this FTSE growth stock could be the bargain of the year!

Harvey Jones has happy memories of owning this FTSE 100 growth stock. Now he's wondering whether to take a trip…

Read more »

Investing Articles

BT share price: a bargain or one to avoid?

This Fool has been keeping tabs on the BT share price. Despite looking cheap, he's steering clear of the stock…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Investing Articles

3 reasons why I predict UK shares will soar over the next 12 months!

Our writer believes there are plenty of reasons why UK shares will do well over the next year or so.…

Read more »

Investing Articles

Are these the best stocks to buy after the UK election?

With Labour now leading the UK, change is on the horizon. I'm considering the best stocks to buy based on…

Read more »

Investing Articles

1,000 shares in this FTSE 100 stalwart would give me £525 of dividends!

The FTSE 100 is packed full of stocks offering sizeable dividend yields, but I feel this one is the pick…

Read more »