LONDON — Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average (Dow Jones Indices:.DJI) may fall 0.61% this morning to give back most of yesterday’s big gains, while the S&P 500 is expected to open 0.62% lower, wiping out the progress it made yesterday. CNN’s Fear & Greed Index has stabilized at 77, rising from yesterday’s close of 75 and ending a week-long decline.
European markets reversed yesterday’s gains this morning as fears grew over the possibility that the U.S. Federal Reserve might soon begin to taper its bond-buying program. Strong U.S. economic data has raised concerns that the country’s growth could soon trigger cutbacks to monetary stimulus, which is widely seen as having helped to fuel recent market gains. As of 7:10 a.m. EDT, the FTSE 100 is down 1.5%, while Germany’s DAX is down by 1.7%.
Investor sentiment may also have been cooled by widespread cuts to global growth forecasts by the Organization for Economic Cooperation and Development. In its latest report, published today, the OECD cut its forecast for global growth in 2013 from 3.4% to 3.1%, reduced its forecast for China from 8.5% to 7.8%, and lowered its U.S. growth forecast from 2% to 1.9%. The OECD also said it expects the eurozone economy to contract by 0.6% this year, rather than the 0.1% previously expected. No major economic reports or corporate earnings are due in the U.S. today, so the OECD report could influence this morning’s trading.
Companies that are due to report before this morning’s opening bell include The Fresh Market Inc (NASDAQ:TFM), which reported a 12.9% increase in net sales and a 14.6% rise in diluted earnings per share to $0.46 in its first-quarter results this morning. The Fresh Market Inc (NASDAQ:TFM) said that comparable-store sales rose by 3%, while net income rose to $22.1 million, up from $19.3 million during the same period last year. Other companies reporting before the bell include Michael Kors Holdings Ltd (NYSE:KORS), RBC Bearings, renewable-energy firm Trina Solar Limited (ADR) (NYSE:TSL), and Movado Group, Inc (NYSE:MOV), while Tilly’s and Avago Technologies are expected to report after the close tonight.
Bank of America Corp (NYSE:BAC) could also see active trading when markets open: It’s down by 1.2% in premarket trading.
The article Dow May Fall as Growth Fears Return originally appeared on Fool.com and is written by Roland Head.
Roland Head has no position in any stocks mentioned. The Motley Fool recommends The Fresh Market. The Motley Fool owns shares of Bank of America, Movado Group, and RBC Bearings.
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