Dow Futures Signal Strong Start Ahead Of Earnings

LONDON — Stock index futures at 7am ET indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI) may open up by 0.22% this morning, while the S&P 500 (SNPINDEX: ^GSPC) may open 0.24% higher. CNN’s Fear & Greed Index is expected to open in the greed zone at 66 today, after closing at 65 on Friday.

European markets moved firmly ahead this morning, as eurozone manufacturing data showed that activity increased in October. The monthly Markit purchasing managers’ survey rose to 51.3 last month, up from 51.1 in September. In the UK, the Markit construction PMI survey rose to a six-year high of 59.4 in October, up from 58.9 in September. The UK’s largest bank, HSBC Holdings, beat analysts’ expectations with third-quarter earnings of $0.71 per share, and was up by 2% at 7am ET, helping to lift the FTSE 100,which was up by 0.48% at 7am ET, while the DAX was up 0.32%, and the CAC 40 was up 0.26%.

Today’s US economic calendar is limited to September’s factory orders report at 10am. Orders are expected to have risen by 1.7% during September, after falling by 2.4% in July, the last month for which data are available, due to last month’s government shutdown. Economic highlights due later this week include October’s nonfarm payrolls report which is expected on Friday.

Companies due to report their latest earnings before markets open include Kellogg Co, which is expected to report third-quarter earnings of $0.89 per share. Also due before the open are updates from Vulcan Materials, Realogy Holdings, Office Depot, CME Group, CST Brands, Sysco Corp and Tenet Healthcare. Later today, there will also be updates from Anadarko Petroleum, Marathon Oil, Unum Group, Consolidated Edison and Hertz Global Holdings.

Other stocks that may be actively traded when markets open include Blackberry, which was up by 2.7% in pre-market trading, as investors wait to learn whether the firm’s rumoured $4.7bn deal with Canadian company Fairfax Financial will take place. BlackBerry has set a deadline of 5pm in Toronto, today, for Fairfax to make a firm offer for the troubled firm. Elsewhere, tech stocks may be actively traded ahead of Twitter’s initial offering, which is expected to take place later this week. 

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.