Dow and Nasdaq Expected to Open Lower

123jump.com Staff
21 Aug, 2006
New York City

Market averages are expected to open lower after gaining for five days in a row. Futures trading indicates that Dow is expected to open 3 points and Nasdaq is expected to open 9 points lower. Lowes reported second quarter profit of 60 cents vs. 52 cents a year ago. In the European trading, market averages are showing a slight negative bias. Japan closed below 16,000 mark.

[R]9:00AM Market averages are expected to open lower in New York trading.[/R]

Market appears to be ready to open on a downward note after gaining every day of the last week. In the pre-market activity, weakness in European trading, fall in oil price and weak earnings guidance from Lowe’s is affecting trading sentiment.

Lowe’s Cos. ((LOW)) reported second quarter profit of 60 cents vs. 52 cents a year ago and missed the estimates of 61 cents. The company reported 11% rise in profit to $935 million in the quarter compared to $839 million a year ago on revenue growth of 12% to $13.39 billion from $11.93 billion. The same-store sales in the quarter were reported at 3.3%.

The company also cut its full year earnings per share guidance to $2.00 and $2.07 from $2.07 and $2.11. The company also said that same-store sales are likely to be between 2% and 3% lower than the earlier projection of between 4% and 5%.

In the European trading mining and energy stocks are dominating the news. France, Germany and Spain are trading fractionally lower at mid-day trading. However, the indexes in London are slightly ahead.

Newspaper report of possible bid to break up a mining conglomerate Anglo American for $80 billion has lifted mining stocks in the UK trading. Rio Tinto jumped 0.6% and Xstrata added 0.5%. BHP Billiton jumped 1.6% on the news that Chilean miners have rejected company’s offer of 4% pay increase.