A day after all three major indexes performed badly and posted the worst losses for the year , the stock market was headed for a higher opening on Wednesday. Dow Jones recorded losses of 1.65 % on Tuesday while S&P 500 reported losses of 1.71 % and NASDAQ closed the day down 1.83 % . But all the three indexes had their futures up by 0.7 and 0.8 percent ahead of the day’s start , which could be the possible direction markets take .
Investors finally had some relief after seeing depreciating yields on both Italian and Spanish bonds. Spanish 10-year bonds briefly yielded 6% before making a retreat to 5.88 % while the yields on Italian 10-year bonds fell another 0.08 % to 5.51 %.
U.S stocks have had a rough patch lately with all the three indexes down by 3% this month already. The Dow and S&P have only had declines in the last five trading sessions .
The selling spree in the markets had been triggered by the health of the Europe’s fiscal data and the weak economic growth globally . The payroll data simply added to the trouble for the markets . There was a sudden shift in gears after the markets enjoyed the best first quarters in the past 10 years.
Some of the analyst believe that even though the environment has changed a bit , its nothing more than giving back some of the gains and prudent investors will look to enhance their positions .
After Alcoa posted surprising first quarter profits, they saw their shares go up by 6 % and investors will be looking forward to more such news.
Before the start , the reports for the export and import for the month of March will be released. While later in the day the Fed is to present the outlooks for 12 district banks, and the Treasury will be releasing the budget for March.
The electronics firm, Best Buy, is expected to stay in the spotlight for a second consecutive day after reports came out suggesting that the CEO was being probed for “personal conduct” after which the shares of the company slumped. Nokia shares fell 11% in premarket trading after they lowered the first quarter outlook giving competitive dynamics for the industry and gross margins declining in the smart devices sector .
The quarterly reports for Google and JPMorgan are set to come on Thursday and Friday respectively and investors are expecting strong results following Alcoa’s example.