Will Wall Street today resume Wednesday's rally? Stock futures sure point to such a possibility at this time ahead of another busy morning, full of corporate earnings. While eBay earnings and a trade fraud of over $7.1 billion could weigh in on stocks, already Nokia reported strong earnings this morning, helping to offset such an effect in the background of the coming economic stimulus package.On Wednesday, many were left wide-eyed and slacked-jawed when the Dow industrials did an over 600 points about face. From being down 326 points, the Dow industrials finished 298 points, or 2.5%, higher. The Nasdaq Composite rose 24 points, or 1.05%, and the S&P 500 rose 28 points, or 2.14%. Many claim the market was oversold, hence buyers came to find bargains. The reverse could also be attributed to the bond insurer bailout and hopes for further interest-rate cuts.
The effect on international markets was generally positive. Asian markets were generally higher Thursday with Japan, South Korea, Australia and the Phillippines all rising for a second day. In Hong Kong, though, the Hang Seng index seesawed to finish down 2.3%.
In Europe, the picture was even better as European shares moved sharply higher on Thursday morning. The pan-European Dow Jones Stoxx 600 index climbed 3.3%, with financials lifting stocks.
While it all points to a positive start, two economic data points will be released today. Weekly jobless claim is due at 8:30 a.m. EST, and while usually doesn't carry much of an impact, it could this time if it points to a much weaker trend in the job market, giving more credence to recession fears.
At 10:00 a.m., December existing home sales will be reported. As investors keep looking for that bottom in the battered housing market, again this data could affect the atmosphere on Wall Street.
No doubt, though, that it will be earnings more than anything that will set the tone today.
Already eBay Inc. (NASDAQ: EBAY), which reported after the close Wednesday, topping analyst estimates, has spooked some with its forecast for the first quarter and 2008. Shares of the internet auctioneer are down $2.00, or 6.9%, to $27 in premarket trading. eBay also announced CEO Meg Whitman will be retiring and John Donahoe replacing her.
On the other hand, Nokia Corp. (NYSE: NOK) shares are up 6.4% in premarket trading to $34.50 after the world's No.1 mobile phone maker reported this morning its fourth-quarter net profit surged 44% to $2.6 billion and that it had reached its long-term goal of 40% market share in handset sales.
Also reporting today are AT&T (NYSE: T), Ford Motor Co. (NYSE: F), Xerox (NYSE: XRX) and homebuilder Lennar (NYSE: LEN).
In something that looks nearly like a deja-vu, "French bank Societe Generale said Thursday it has uncovered a $7.14 billion fraud - one of history's biggest - by a single futures trader who orchestrated a series of bogus transactions." The bank, already exposed to the subprime crisis, has been destabilized and trading in its shares have been suspended.
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Reader Comments (Page 1 of 1)
1-24-2008 @ 12:55PM
rawdawg said...
All of this is just a short term fix. And truth be told, it has been happening over past 3 decades. Reagan and Clinton have just as much blame as the current administration. This is an interesting perspective on this(the midas touch)