Bob is out today. This post is from his producer, Robert Hum, who is helping to cover the markets in Bob's absence.
Futures point towards a fairly flat open this morning, despite a much stronger durable goods number. After yesterday’s drop, the markets lost all of their gains for the week, as the Dow is now down 1.3% this week, heading into Friday’s trading. Continue to keep an eye on the financials today, as we wait to see more direction from them.
Can they regain the momentum that they had earlier in the week or will they instead continue to show signs that they are perhaps overbought? Also in focus later this morning are the home builders. Look to see if there’s any reaction to the New Home Sales number that is released at 10 am ET. This follows their dismal performance yesterday – the S&P Homebuilding Index had its worst day ever, falling 10%.
Crocsdramatically slashed its Q2 and full-year revenue and earnings forecasts after the close yesterday. The company has seen a “challenging” environment in the U.S. and overseas this quarter. The CEO noted that retailers were “extremely cautious with their level of reorders” and preferred maintaining lower inventories of their products. Stock is down nearly 50% in pre-market trading.
Burlington Northern Santa Fe beat estimates, but only after it had previously cut its guidance for the quarter last month. The company was impacted by Midwest storm flooding, a weaker economy, and higher fuel prices.
Eastman Chemical results were inline with expectations. Revenue growth was a result of the higher prices the company charged to offset the increase in raw materials and energy costs. The company continues to see these cost pressures into the third quarter, as its guidance is below estimates.
American Axleposted at large loss of $12.49 per share (including items). It was hurt by the UAW strike, but is also feeling the ripple effects affecting the broader auto industry. It noted that weaker truck and SUV demand dramatically affected its production volumes for those vehicles. In fact, production volume for GM and Chrysler SUV and light trucks was down 51% from a year ago.
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