Dow Futures Fall Ahead of Jobs Figures

Index futures were lower ahead of this morning’s jobless claims figures, suggesting the Dow Jones and S&P 500 may fall at the open.

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 the Dow Jones Industrial Average (DJINDICES: ^DJI) may open down by 0.41% this morning, while the S&P 500 (SNPINDEX: ^GSPC) may open down 0.50%. CNN’s Fear & Greed Index remains neutral, at 47, down from yesterday’s close of 50.

European markets were mostly lower this morning, as a combination of low volumes and profit-taking caused most of the main indices to fall.

Swiss insurer Zurich Insurance was one of the high-profile fallers, dropping 3.6% after missing analysts’ second-quarter profit forecasts following larger-than-expected disaster losses. At 7am ET, the FTSE 100 was down 0.92%, the DAX was down 0.65% and the CAC 40 was down 0.36%.

US investors will have plenty to focus on before markets open this morning.

At 8.30am, the latest weekly jobless claims figures are expected to show initial claims remaining unchanged at 333,000 last week, while July’s consumer price index is expected to show that prices rose by 0.2% in July, after rising by 0.5% during June.

At 9.15am, new figures are expected to show that industrial production rose by 0.2% in July after gaining 0.3% in June, while capacity utilisation rose to 77.9%, from the 77.8% in June.

Finally, at 10am, August’s home builders index is expected to drop slightly to 55, from 57 in July, while August’s Philadelphia Fed manufacturing survey is expected to have fallen to 15.0, from 19.8 in July.

Earnings may come back into focus today, too.

Among the big names due to report before the opening bell are Wal-Mart Stores, which is expected to report second-quarter earnings of $1.25 per share, and fellow retailer Kohl’s, which is expected to report second-quarter earnings of $1.04 per share. Estee Lauder Companies is also expected to report before the open, while Nordstrom is scheduled to report after the close tonight.

One stock that is likely to be actively traded when markets open is Cisco Systems. The networking giant reported fiscal fourth-quarter results in line with expectations yesterday, but surprised investors on the subsequent conference call when it announced plans to lay off 4,000 workers due to a weakening outlook.

Following the call, Cisco’s stock fell almost 10% and is currently down by 8.4% in pre-market trading.

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

Midnight is celebrated along the River Thames in London with a spectacular and colourful firework display.
Investing Articles

Nvidia shares hit a new high after record earnings. Is there a lot more to come?

Nvidia stock smashes expectations, as quarterly profit soars 600%. It's time for a 10-for-one stock split too, as it reaches…

Read more »

Abstract 3d arrows with rocket
Investing Articles

Scottish Mortgage shares rise following FY update! Time to buy?

Scottish Mortgage (LON:SMT) shares were closing in on 900p today after a positive full-year report from the giant FTSE 100…

Read more »

British Isles on nautical map
Investing For Beginners

It’s time! Here’s my FTSE 100 hit list for the general election

Jon Smith outlines the potential reaction for the FTSE 100 from the upcoming general election and the main stocks he's…

Read more »

Investing Articles

National Grid reveals £7bn rights issue and the share price plunges – should I invest now?

The National Grid share price has dropped almost 10% and a dividend cut is looming, but it may be a…

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

Nvidia stock is becoming more affordable!

Nvidia stock is up 2,500% over five years, but the chip giant’s share split -- announced during its earnings report…

Read more »

Investing Articles

Are Rolls-Royce shares good for passive income?

Our writer is getting mixed messages about the Rolls-Royce dividend. But whatever happens, he thinks passive income hunters will be…

Read more »

Investing Articles

Could the Rolls-Royce share price end 2024 above £5?

As the Rolls-Royce share price continues its remarkable run, our writer considers where it might be at the end of…

Read more »

Investing Articles

UK stocks are hitting all-time highs! Yet these 2 still look cheap to me

The FTSE 100's on a roll. But it's still possible to pick bargain UK stocks, provided we know where to…

Read more »