Dow points to red on Japan downgrade, Apple, Facebook in focus

22nd May 2012, 7:35 am by Joyanta Acharjee
Dow points to red on Japan downgrade, Apple, Facebook in focus

U.S. equity markets looked set to open lower Tuesday after Fitch Ratings cut Japan’s credit rating, citing rising public debt and slow deficit-reduction efforts.

In pre-market trading, the Dow Jones Industrial Average dropped 13 points, or 0.1%, to 12,477.22, the S&P 500 lost 1 point to 1,314.70 and the Nasdaq declined 2.5 points to 2,541.15.

Monday US markets ended in the green with the Dow up 1.09%, the S&P 500 was 1.60% higher and the NASDAQ ended the session up 2.46%.

Fitch cut Japan's rating to A-plus from AA with a negative outlook, which means a further cut is possible.

Wednesday, eurozone leaders are due to meet in a summit to address the latest problems with European sovereign debt, worries that Greece is moving closer to leaving the eurozone, and the contagion effects an exit might have on other economies.

In corporate news, Apple (NASDAQ:AAPL) has kept its ranking as the world’s most valuable brand, according to a new study by market research agency Millward Brown. IBM (NYSE:IBM) came in second, followed by Google (NASDAQ:GOOG) coming in at third place.

Facebook (NASDAQ:FB) stock may also be in focus as its stock fell 11 percent on its second day as a listed company.

Clothing outlet Urban Outfitters (NASDAQ:URBN) reported a first-quarter profit of $0.23 per share, beating estimates by three cents, though revenues did come up short of consensus.

BlackRock (NYSE:BLK) is part of a group of three investors purchasing a $1.6 billion stake in motor racing group Formula One from CVC Capital. Formula One is currently making plans For a $3 billion initial public offering in Singapore.

On the economic front, the National Association of Realtors releases April existing home sales at 10am EDT. Economists expect a gain of 2.7 percent from March to an annual rate of 4.6 million units.

Commodities


On the NYMEX, crude futures fell 33 cents to $92.53 a barrel while gold futures fell $12.60 to $1,576.10 an ounce.

Europe

European stocks moved higher in morning trading with the FTSE 100 rising 0.9%, the DAX gaining 0.7% and the CAC 40 up by 0.6%.

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here