Stocks fall on earnings, Europe fears
David Russell | email@example.com
Stocks are falling this morning as earnings weaken and confidence sours in Europe.
S&P 500 futures are down more than 1 percent, following declines of a similar magnitude in France and Germany. Asian markets were mixed overnight.
Today's drop comes after the S&P 500 rebounded from a sharp selloff in yesterday's session as investors face a flow of negative headlines: Moody's downgraded five of Spain's regional governments, French manufacturing sentiment dropped to its lowest level in more than two years, and earnings reports have continued to paint a picture of weakening performance.
The tone has been especially negative in technology, punctuated yesterday afternoon when chip maker Texas Instruments and hard-drive manufacturer Western Digital issued disappointing guidance. This morning chemicals giant DuPont is down by more than 5 percent after earnings missed consensus estimates and outlook trailed expectations. Industrial conglomerate 3M also lowered its projections.
Currencies and foreign-exchange markets are showing risk aversion, with oil, copper, and silver all down more than 1 percent. Agricultural foodstuffs are mostly negative as well. The euro, Australian dollar and Canadian dollar are all down against the U.S. dollar, while the Japanese yen is up across the board.
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S&P 500 futures are indicated to open fractionally lower but have been nudging higher throughout the morning. The Nasdaq is up almost two-tenths of a percent after strong numbers from Cisco.
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S&P 500 futures are little-changed, while most European indexes are posting small gains. Asian markets were mostly positive overnight, led by a 2 percent rally in Tokyo.
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German, France, and Italy will report preliminary gross domestic product numbers early in the morning, which could affect sentiment before the opening bell.
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S&P 500 futures are fractionally higher after earlier falling by more than one-tenth of a percent. Europe is also fighting its way back to positive after posting slightly larger declines.