DOW Futures Down 300pts. This Morning On Weak Earnings Data; Geopolitics
If you have some cash on the sidelines, this morning may be an opportune time to do some bargain hunting. DOW, S and P, and NSADAQ futures are getting crushed this morning, on weak earnings numbers and forecasts from Procter and Gamble and Caterpillar among others; while, December Durable Goods Orders in the U.S. fell unexpectedly sharply. Procter and Gamble is the world’s largest household product maker, said that foreign exchange headwinds would hit fiscal sales by 5 percent in 2015; and, net earnings by 12 percent, adding that “the outlook will remain challenging. Quarterly profits in the group fell 31 percent as a result of the stronger dollar.”
U.S. Durable Goods Orders fell sharply in December, down 3.4 percent, following a 2.1 percent decline in November. The weakness was led by a 5.5 percent in the volatile category of commercial aircraft, according to an Associated Press report out this morning.
Geopolitical wise, Russia is making more trouble in Ukraine, Moody’s downgraded Russian debt to junk status, Greece is facing bankruptcy, and the Iranian nuclear issue is getting heated. Having said all that, I will likely use this morning’s selloff to buy selectively in technology and bio-pharma. V/R, RCP