Dow May Open Flat After Friday's Record Close
May 20th 2013 7:53AM
Updated May 20th 2013 9:00AM
LONDON -- Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average may open down by seven points this morning, while the S&P 500 may open a single point lower. CNN's Fear & Greed Index has surged higher and currently sits at 91, suggesting that the bullish sentiment may be nearing a peak.
In London, markets opened strongly this morning, and the FTSE 100 is up 0.39% as of 7:30 a.m. EDT. Germany's DAX has continued its recent strong run, gaining a further 0.36%. Stock markets in the eurozone's recession-bound southern states all lost ground following weak economic data. In Greece, new data showed that industrial orders were down by 12.7% in March compared with the same period last year, while in Italy, industrial orders were down by 10% on a year-on-year basis. Greece's Athens Stock Exchange General Index is down 3% at the time of writing, while Italy's FTSE MIB is down by 0.8%.
U.S. trading may start slowly, as there are no major economic reports due this morning and the earnings calendar is nearly empty. Companies that are scheduled to provide quarterly updates include Campbell Soup, which is expected to report earnings of $0.56 per share before markets open this morning. Should Campbell Soup disappoint investors, its shares could be heavily traded, as the firm's stock has risen by 36% so far this year to outperform its peers. Campbell is also expected to provide updated guidance today -- it has previously projected earnings of between $2.51 and $2.57 for the 2013 fiscal year.
Other stocks that may be actively traded today include Qihoo 360 Technology. The Chinese Internet security firm reported quarterly earnings of $0.14 per share earlier this morning, beating consensus forecasts of $0.13 per share. Qihoo's revenue was up 58% compared with the same period last year, also beating expectations, and the firm has updated its second-quarter guidance to between $142 million and $144 million. Later today, TiVo is due to report its latest quarterly earnings, as are Urban Outfitters, Guess, and Big Lots.
Yahoo! stock is 2% higher in premarket trading this morning following reports that the Internet giant is about to buy blogging site Tumblr for $1.1 billion, although neither company had confirmed the deal at the time of writing.
Finally, let's not forget that 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 of 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.
The article Dow May Open Flat After Friday's Record Close originally appeared on Fool.com.Roland Head has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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