Dow Poised to Deliver Early Gains
LONDON -- Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average may open up by 0.3% this morning, while the S&P 500 may also open 0.3% higher.
European markets moved higher this morning, with banks and natural-resources firms among the gainers. European carmakers such as Volkswagen and Peugeot also rose following a report showing that new-car sales in the eurozone rose in April for the first time since September 2011. Surprisingly, one of the top three gainers was Spain, where new-car sales rose by 10.8% in April compared with the same period last year.
Today's U.S. economic reports include the University of Michigan Consumer Sentiment Index at 9:55 a.m. EDT; consensus forecasts indicate that the index may have risen to 77.5 in May from 76.4 in April. At 10 a.m. EDT, April's leading-indicators report is expected to show a 0.3% increase following the 0.1% fall seen in March.
Today's corporate earnings reports include Stage Stores , which reported a 3.5% increase in quarterly sales to $379 million and an increase in comparable-store sales of 0.7%. However, the firm reported an adjusted loss of $0.02 per share for the quarter compared with an adjusted loss of $0.05 per share for the same period last year. Donaldson is also scheduled to report before the opening bell and is expected to report earnings of $0.48 on revenue of $658 million, according to a FactSet survey.
In other corporate news, Aruba Networks is down by 21% in premarket trading after it missed its third-quarter earnings forecast and reported a loss of $20.2 million for the quarter ended April 30. Although Aruba reported a 12% increase in revenue, it was sapped to an overall loss for the quarter by higher taxes and increased input costs and operating expenses. JC Penney is 1.3% lower in premarket trading after it reported a quarterly loss of $1.58 per share last night, more than double the $0.75 per-share loss reported for the same period last year. Dell's profit also came in below expectations yesterday: The PC maker reported first-quarter adjusted profit of $0.21 per share, down from $0.43 for the same period last year and missing consensus forecasts of $0.35 per share.
Finally, let's not forget that the Dow's daily movements can add up to some serious long-term gains. Indeed, Warren Buffett recently wrote, "The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions." If you, like Buffett, are convinced about the long-term power of the Dow, you should read "5 Stocks To Retire On." Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.
The article Dow Poised to Deliver Early Gains originally appeared on Fool.com.Roland Head has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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