Early Losses Expected for Markets


LONDON -- The Dow Jones Industrial Average (INDEX: ^DJI) and the S&P 500 (INDEX: ^GSPC) are expected to open lower this morning, according to futures markets at 7 a.m. EDT.

After a quiet day yesterday for economic news, today's data will include August's wholesale inventories and job opening figures at 10 a.m. EDT, followed by the latest Federal Reserve Beige Book at 2 p.m. EDT. Wholesale inventories are expected to have risen by 0.5% following August's 0.7% rise, providing further evidence of the hesitant state of the economy.

Shares in Alcoa could be active in trading this morning following the company's latest results and revised full-year outlook, which were published after the close last night. Although it beat adjusted earnings forecasts, Alcoa reported a quarterly loss after charges and downgraded its full-year growth forecast, cutting it from 7% to 6% in the light of weakening demand for aluminum from China.

Earnings are expected today from Costco, and investors will be watching carefully to see if they, too, disappoint.

European markets
In Europe this morning, markets fell through the morning as concerns over the eurozone crisis and Chinese growth continued to weigh on stocks. An auction of Italian 12-month bonds highlighted the fragility of the current situation: Yields rose to 1.94% from 1.69% last month, thanks to fears of contagion from Spain. Markets continue to expect a bailout request from Spain, and the country's bond prices fell this morning, pushing the yield on 10-year bonds back up toward 6%.

At 7 a.m. EDT, the DAX was down 0.3%, the CAC was down 0.3%, the FTSE MIB was down 0.5%, and the IBEX was down 0.7%. In London, the FTSE 100 (INDEX: ^FTSE) was 0.4% lower, but bailed-out banks Lloyds Banking Group and Royal Bank of Scotland moved against the trend, gaining 3.5% and 1.7%, respectively, by the end of the morning session.

Billionaire investor Warren Buffett prefers to invest in U.S. banks, but he did recently invest $1 billion in a well-known British blue chip brand, expanding his stake in the company to more than 5%. This famous British name has global expansion potential -- and you can discover the identity of the company and the price he paid in this special exclusive report. Best of all, the report is free -- so download it today while it's still available.

Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is The Motley Fool's latest report. We urge you to read it today -- your wealth could be transformed. Click here now to request your free, no-obligation copy. The Motley Fool is helping Britain invest. Better.

Further investment opportunities:

The article Early Losses Expected for Markets originally appeared on Fool.com.

Roland Head has no shares in any of the companies mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published