US markets are perhaps not going to see the kind of ugly open that could have been possible were the trade data overnight from China not so positive but nonetheless concerns of a ten percent correction in the S&P 500 are forcing stocks lower on the open today.
Futures suggest:
Dow Jones will open 15 points lower at 16,529 with the
S&P 500 expected to open 4 points lower at 1,902 and the
NASDAQ Composite 12 points lower at 3,858.
It would be of some consolation that Fed officials in the past few days have been warning that slowing world growth could delay rate hikes but investors main concern right now is earnings, so more talk of slowing growth just fuels fears over the impact it may have had over earnings in Q3.
Bank earnings will be in focus tomorrow with reports from J P Morgan Chase & Co (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup Inc (NYSE:C); the sector has been one of the worst performing this year given low market volatility and tightening regulations so tomorrow may not be the day to reverse earnings-concerns.
Quarterly results will also come from Dow industrial heavyweights Intel Corporation (NASDAQ:INTC) and Johnson & Johnson (NYSE:JNJ).
US railroad CSX (NYSE:CSX) report quarterly earnings tomorrow fresh after news it declined an offer for a merger withCanadian Pacific Railway Limited (TO:CP).
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