News Column

Futures Pointing To Early Weakness On Wall Street

August 5, 2014

WASHINGTON (Alliance News) - After ending the previous session mostly higher, stocks are likely to move back to the downside in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 45 points.

The downward momentum that has recently emerged on Wall Street is likely to weigh on the markets after contributing to the sell-off seen late last week.

Lingering geopolitical concerns have been a factor in the recent selling pressure along with indications that the markets are due for a correction in light of the Federal Reserve's continued moves to scale back its asset purchases.

Negative sentiment may also be generated by news that Target (TGT) lowered its second quarter earnings guidance, with the retail giant falling by 4.7% in pre-market trading.

Target said it now expects second quarter adjusted earnings of USD0.78 per share compared to its prior guidance of USD0.85 to USD1.00 per share.

The company attributed the lower guidance to expenses related to last year's data breach as well as promotional markdowns at its US stores and softer than expected sales in Canada.

Not long after the open, trading could be impacted by the release of a report from the Institute for Supply Management on service sector activity in the month of July.

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Source: Alliance News

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