Ahead of the Bell: Dow futures are trading down 141 points and S&P futures are trading down 17 points following the previous trading session’s sell off. The Group of 20 nations pledged to tackle rising risk to the global economy and promised to do what was necessary to restore financial stability, calm financial markets, and ease concerns the global economy is on the brink of another recession.
- On the economic calendar today, no reports are due. New York Fed President, William Dudley will be speaking at the 2011 Bretton Woods Committee International Council Meeting. San Francisco Federal Reserve Bank President, John Williams will be speaking on unconventional monetary policy at a Swiss National Bank conference in Zurich. Companies reporting earnings include KB Home. The dollar is up against major currencies. Crude oil is currently trading at $82 a barrel. Gold is trading at $1,750.
- Yesterday, stocks plunged after the Fed said it sees significant downside risks to economic outlook.
- On CNBC today, former General Electric CEO, Jack Welch, talked about the current state of the economy. Welch expects in the 3rd quarter companies will do o.k. to terrific, including technology, healthcare, and service industries. Welch said the 3rd quarter numbers will be good, companies have learned to live and operate in an environment of 1% to 2% GDP and productivity is off the charts as companies do more with less. Welch pointed out however, that it is not a good story for people looking for jobs. The environment isn’t there, government red tape is preventing job creation and President Obama’s jobs bill has clauses that are not going to get people to hire. Welch does believe we have a very competitive economy right now and it is doing better than we think. He does not see the need for all of the doom and gloom discussions. Welch thinks we are not going to solve this problem overnight but can’t know how things will be in 90 days from today and he is overall optimistic.
- Happy Friday, have a nice day and a wonderful weekend.
DJIA down 390.01 pts/-3.51%/10,734.05
S&P down 37.13 pts/-3.19/1,129.59
Nasdaq down 82.52 pts/-3.25/2,455.67
Dow Futures down 141.00 pts/-1.29%
S&P Futures down 17.30 pts/-1.39%
Nasdaq Fut down 32.58 pts/-1.46%
CAC 40 -2.37%
NIKKEI 225 -2.07%
HANG SENG -1.36%
Overseas: World stock markets were down today. European and Asian markets are lower following sharp declines in U.S. markets.
Economic Reports: None
- PNM Resources (PNM) said it is selling Texas-based First Choice Power, a subsidiary of company for $270M in cash plus additional working capital.
- Facebook announced new ways users can listen to music and watch TV, as it incorporates media with its social networking.
- Hewlett Packard (HPQ) names Meg Whitman President and CEO, Ray Lane was appointed executive chairman; Léo Apotheker steps down as president, chief executive officer and director.
Gold:down $42.10 to $1,697.85
Oil:down $1.96 to $78.55
EUR/USD 1.3453 -0.0005
USD/JPY 76.2150 -0.0700
GBP/USD 1.5425 +0.0084
Volatility Index (VIX): As of the close of business Thursday, September 22, the VIX is up 4.03 at 41.35
Companies Reporting Quarterly Earnings:
None as of yet.
Today’s Opening and Closing Bells:
John Bender, Founder and Chairman of the St. Baldrick's Foundation, in recognition of Childhood Cancer Awareness Month. Mr. Bender will be joined on the bell podium by five-year old Michael Weinstein, who is currently battling cancer will ring the open bell.
H.E. Herman Van Rompuy, President of the European Council will ring the closing bell.