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27 Jan 2015
Risk aversion likely to grip Wall Street
FXStreet (Mumbai) - The US stock markets are likely to open sharply lower today, offsetting the modest gains posted on Monday due to the surprisingly weak US durable goods orders data and weak corporate earnings.
At the time of writing, the DJIA futures traded 1.34% lower at 17,377.50 levels, while the S&P futures traded 0.95% lower at 2033.95 levels. Meanwhile, NASDAQ and Russell futures were down 1.16% and 0.93% at 4219.90 and 1188.20 levels respectively. The VIX futures were up 6.08% at 18.33 levels.
The weakness in the stocks is partly driven by durable goods orders, which tumbled by 3.4% in December following a revised 2.1% decrease in November. Orders for core capital goods - a measure of business investment - fell 0.6% in December for the second straight month.
Meanwhile, weak corporate earnings are also hurting the stock prices. Shares in Microsoft are moving sharply lower in pre-market trading after the company provided disappointing guidance. Caterpillar may also come under pressure after reporting weaker-than-expected earnings and lowering its outlook for 2015. Other companies like DuPont, Procter & Gamble, and Pfizer also reported weak earnings. Most of the companies blamed a strong US dollar for weak earnings.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance, while most European markets have come under pressure after having price-in the ECB’s QE in the last week.
At the time of writing, the DJIA futures traded 1.34% lower at 17,377.50 levels, while the S&P futures traded 0.95% lower at 2033.95 levels. Meanwhile, NASDAQ and Russell futures were down 1.16% and 0.93% at 4219.90 and 1188.20 levels respectively. The VIX futures were up 6.08% at 18.33 levels.
The weakness in the stocks is partly driven by durable goods orders, which tumbled by 3.4% in December following a revised 2.1% decrease in November. Orders for core capital goods - a measure of business investment - fell 0.6% in December for the second straight month.
Meanwhile, weak corporate earnings are also hurting the stock prices. Shares in Microsoft are moving sharply lower in pre-market trading after the company provided disappointing guidance. Caterpillar may also come under pressure after reporting weaker-than-expected earnings and lowering its outlook for 2015. Other companies like DuPont, Procter & Gamble, and Pfizer also reported weak earnings. Most of the companies blamed a strong US dollar for weak earnings.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance, while most European markets have come under pressure after having price-in the ECB’s QE in the last week.