Weakness overseas weighs on stocks

By David Russell,

Shutterstock photo

U.S. stocks are following European and Asian markets lower amid concerns about the global economy.

The S&P 500, Nasdaq and Dow Jones Industrial Average are indicated to decline by one-quarter to one-third of a percent. The declines were bigger overseas, with the Nikkei and Hang Seng dropping about 1 percent after Japanese retail sales fell and South Korean business confidence worsened.

In Europe, the confidence declined to the lowest level since August 2009 as the continent's sovereign-debt problems continue to drag on. Germany's DAX index fell by about three-quarter of one percent, while France's CAC-40 fell 0.50 percent.

Attention will now turn to the U.S., where the Labor Department will report weekly jobless claims and the Commerce Department will report monthly income and spending data. Retailers are also issuing monthly same-store sales. These American reports may help sentiment because the numbers have been stronger on this side of the Atlantic.

Commodities and foreign exchange are mixed. The greenback is lower against the euro, but higher against the Canadian and Australian currencies, so the typical correlations are not in effect. Energy and metals futures are also mixed, while agricultural foodstuffs are little changed.

In individual-company news, Pandora Media is rallying on a strong quarterly report while Ciena Corp. is down 8 percent after earnings missed expectations and revenue guidance for the current quarter lagged expectations.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing Options
Referenced Stocks: CIEN , P

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