Stocks retreat from long-term highs
David Russell | [email protected]
Futures on the benchmark index are down fell by almost half a percent, following similar losses in Europe, with the declines accelerating in the last hour. Asian indexes were mostly higher in the overnight session, with continued strength in mainland China and Japan.
The S&P 500 is vying with the same 1470 area, where it peaked in September, which was then its highest level since late 2007. It's been ascending as worries about political risk in the United States and Europe fades, while the promise of economic growth improves.
Investors are currently bracing for another corporate-earnings season, which today will bring results from homebuilder Lennar. Later in the week, major financials including Goldman Sachs, JP Morgan, Citigroup, and Bank of America will follow.
Foreign-exchange trading is bearish, especially after Japan's finance minister warned that the recent selloff in the yen may trigger inflation. The euro, Australian dollar, and Canadian dollar are each lower against the greenback, while the yen is up across the board.
Commodities are also painting a mostly negative picture, with oil and copper both posting small losses. Agricultural foodstuffs and precious metals are slightly higher.
In company-specific news, Lululemon Athletica will probably fall after its sales guidance came in lower than analysts had expected. Forest Laboratories is also down in early trading after its earnings and revenue missed consensus estimates. Dell is continuing to climb amid takeover speculation, up another 5 percent following its 13 percent move yesterday.