US markets to open slightly lower on rate rise concerns
Yesterday’s comments by St. Louis Fed chief James Bullard appear to have given investors pause this morning with US markets set open slightly lower today as investors absorb the wider meaning behind his comments yesterday about the prospects for higher US rates as soon as Q1 next year.
While it would be easy to dismiss his comments given he is not a voting member of the FOMC this year, the fact remains that last year he was one of the more dovish members of the committee, which suggests he may well not be alone in thinking along these lines.
Given these concerns there may well be some caution heading into the weekend as US markets look to close lower for the second week in three.
Companies in focus include sportswear giant Nike after the company reported earnings of $0.78c a share, above expectations of $0.75c a share, with US and European markets performing well.
The problems continue for General Motors after the company announced the recall of 33,000 Chevrolet Cruze models due to an airbag issue.
Chinese internet giant Alibaba also put to rest where they would be listing their massive IPO later this year, choosing NYSE over Nasdaq, under the ticker symbol BABA, with Yahoo shares getting a boost as a result.
The only economic data out today is the final University of Michigan sentiment survey which is expected to show an increase from 81.2 to 82.0.
The S&P500 is expected to open 2 points lower at 1,955 2
Dow Jones is expected to open 8 points lower at 16,838.2
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