Before the bell: Buyers waltz in; futures indicate a sharply higher open
Posted by: in Stocks Money NewsFiled under: Before the bell, International markets, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Market matters, Adobe Systems (ADBE), Best Buy (BBY), Darden Restaurants (DRI), Goldman Sachs Group (GS), Palm Inc (PALM), Economic data, Housing, Federal Reserve
Analysts have been telling investors the past few days to fasten their seatbelt because we’re headed for more upturns and downturns in the market as the economy is getting bumpy. Seems they weren’t wrong, but I guess anyone following the market recently had already known that.
After a day where blue chip stocks (Dow) declined 1.3% and tech stocks (Nasdaq) dropped 2.3%, stock futures this Tuesday morning suggest a sharply higher open. The reason could be that central banks around the world have opened their coffers to tackled the credit crunch. Today, investors will look to more housing data and earnings from Goldman Sachs.
At 8:30 a.m. EST, an hour before the opening bell, the Department of Commerce will report November housing starts and building permits. As has recently been the case, no good news is expected to come from this sector. Economists are expecting housing starts to fall yet again to 1.175 million units in November from 1.229 million units in October. As MarketWatch claims, these are levels of about 50% from the peak. Similarly, building permits are expected to have declined last month. Even so, economists don’t see the sector reaching a trough yet, expecting more declines.
As the housing data comes in, investors will also await to hear from the Federal Reserve and its plan to give home mortgage borrowers new protections against shady lending practices.
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