October 17, 2011 - Financial Market Status in U.S. & Europe
With the U.S. Dow increasing over 1.4% on Friday and now at 11,644, long term investors that retained exposure have seen significant valuation gains this month.
U.S. Dow and S&P equity futures are flat as we approach the markets opening today, primarily because European Union leaders over the weekend dampened enthusiasm for a quick ending to the eurozone debt distress that policy makers are pushing for at an Oct. 23 summit -- German Chancellor Merkel went so far as to say debt restructuring discussions will continue well into 2012. Spain's 10-year bonds (post the recent downgrade) are yielding over 5.2% while the Portuguese 10 yield is presently over 11.2%. Meanwhile, in the U.S., industrial production may have expanded for a fifth consecutive month in September (a Federal Reserve report is expected to cite this news this morning). October 18 data is forecasted to show China’s economy grew more than 9 percent last quarter.
Regarding 2011 Q3 earnings, Citigroup Inc. and Wells Fargo & Co. (and other U.S. companies) are scheduled to release results today. IBM (world’s fifth-biggest company by market value), is expected to report earnings after the close of trading.