Ahead of the Bell: Dow futures are trading down 3 points and S&P futures are trading up 1.4 points as European markets erased earlier gains to turn flat as traders are likely trying to book profits on the back of a two-day rally with fears over Greece still at the forefront. Manufacturing across the globe is reportedly slowing, including in the U.S. and China, which added to the drag on foreign markets and U.S. Futures.
- On the economic calendar today: University of Michigan Consumer Confidence results are expected to be 77.8.
- The dollar is down against the major currencies. Gold is trading at $1,565. Crude oil is currently trading at $91.05 a barrel.
- Yesterday, stocks were again mixed though closed off the day’s lows on continued fears that Greece is preparing to exit the European Union. Jobless claims remained steady at 370k and durable goods orders were seen as slowing. Bank lending fell by 0.8% or $56 billion according to FDIC reports.
- On CNBC today, New York Times columnist, Tom Friedman, spoke about the five key pillars that made American the powerful nation that it is. Those were a successful education system, superior infrastructure, flexible immigration laws, effective rules and regulations, and government funded research. However, he notes that we are falling behind in each of those measures, which if left uncheck, will lead to a gradual U.S. decline. He stated that we need short term stimulus and a stronger long term fiscal spending plan to help alleviate our economic concerns. On the education system, we need to recruit better teachers and create a teacher evaluation system. We need better parents who are wholly involved in their kids’ daily school activities and neighbors who care about the schools. We need better students who understand the value of a solid education. Friedman stated that the parents of baby boomers held the belief that they should save and invest which was better than the borrow and spend philosophy that the baby boomer generation launched. Lastly, Friedman believes that the U.S. made the biggest mistake after the end of the cold war; we thought we won and could kick back and relax, but instead we unleashed enormous pent up aspirations that yielded a huge group of people who embraced our similar ideals.
- Happy Friday and Happy Memorial Day Weekend!
Thursday’s Close
DJIA up 33.60 pts/+0.27% to 12,529.75
S&P up 1.82 pts/+0.14% to 1,320.68
Nasdaq down 10.74 pts/-0.38% to 2,839.38
Friday’s Futures
Dow Futures down 3.00 pts
S&P Futures up 1.10 pts
Nasdaq Fut up 5.00 pts
Overseas Markets
FTSE -9.69/-0.18%
CAC 40 -2.15/-0.07%
NIKKEI 225 +17.01/+0.20%
HANG SENG +47.01/+0.25%
Overseas: World stock markets were mixed today. European markets are down on continued concern over the fallout from Greece’s exit from the European Union. Profit taking in Asia boosted the markets higher.
Economic Reports: U. of Michigan Consumer Confidence expected to be 77.8 at 9:55 a.m.
Top Headlines:
- CME Group Inc. (CME) announced a five for one stock split to be paid in the form of a 400 percent stock dividend in July.
- DISH Network Corporation (DISH) traded lawsuits with ABC, CBS, Fox and NBC over a user-enabled commercial skipping technology that DISH recently launched called AutoHop. This feature is an advancement that is generating buzz and already seeing a groundswell of support from consumers
- H.J. Heinz Co. (NHZ) is trading lower this morning after reporting disappointing Q1 earnings and reducing its growth rate outlook. Jeffries and JP Morgan lowered their ratings on the company.
- Lehman Brothers (LEHMQ.PK) confirms a report that it has agreed to buy the 26.5% stake it doesn't own in Archstone from Bank of America (BAC) and Barclays (BCS) for $1.58B.
- NBC Universal is reportedly in talks to buy Microsoft’s share in the shared MSNBC.com website.
Commodities/Currency:
Gold: up $4.20 to $1,564.00
Oil: up $0.38 to $91.04
EUR/USD: +0.0012to1.2550
USD/JPY: -0.04 to 79.52
GBP/USD: +0.0004 to1.5677
Volatility Index (VIX): As of the close of business Thursday, May 24, the VIX is down 0.79 at 21.54
Companies Reporting Quarterly Earnings:
Verifone Sysems Inc. (PAY) reported adjusted EPS of $0.64 vs. expectations of $0.61; revenue was $479 million, higher than the $471.8 million expected by analysts. Third quarter revenue was forecasted at $495-$500 million, lower than expectations of $502.2 million.
Today’s Opening and Closing Bells:
His Excellency Juan Manuel Santos, President Of The Republic Of Colombia will ring The Opening BellSM. Executives from several NYSE companies will join President Santos.
Representatives from the US Marine Corps, US Navy and US Coast Guard will ring the Closing BellSM in commemoration of Memorial Day and the 25th Fleet Week in New York. Rear Admiral Herman A. Shelanski, US Navy will be the Bell Ringer.
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