US markets to open lower as investors fear short term top
After another day of low volatility record closes for the Dow and S&P 500 spurred on by some M&A from Merck and Tyson Foods; despite improved inflation numbers from China, US markets look set to open lower today. With each successive higher close, investors get more wary about buying at a short term top.
Futures suggest the S&P500 will open 4 points lower at 1,947 with the Dow Jones expected to open 19 points lower at 16,924.
Chinese CPI turned positive in May, possibly putting an end to the brief display of deflation seen in April that put the year-on-year change at 2.5%. PPI still declined but at a lower rate than usual. The FTSE China A50 reacted well to the news but that isn’t following through to the S&P 500.
Merck&Co will acquire smaller pharmaceutical rival Idenix for $3.85bn citing it the company’s hepatitis C drugs as a big potential future-revenue-maker.
GoDaddy, one of the biggest players in domain-name registration, famous for their super bowl adverts have announced plans for a $100m IPO.
RadioShack is expected to post a loss of 52c per share on revenue of 767.45m.