US Stock Index Futures Maintain Status- Quo Prior to Key Economic Data

U.S. stock-index futures didn’t show any excitement before release of home sales, factory orders and jobless claims data. Meanwhile shares of Fifth Third Bancorp (NASDAQ: FITB) fell by 2.9% to $12.18 after Sanford C. Bernstein & Co. downgraded the stock to Market performer as they believed the stock was fairly priced at these levels. Walt Disney Company (NYSE: DIS) & Coca Cola Company (NYSE: KO) jumped 1.9% & 1.1% respectively after buy recommendation by BofA- ML & UBS respectively.
On back of good earnings growth expectations in the banking sector & possible resolution to Greece’s sovereign debt crisis S&P 500 rose to its highest point after Jan 20. Economists expect a better performance in the housing sector due to extension in tax credit, they also feel that jobless claims would go down.
The euro fell from a two-week high against the dollar. Fund Manager’s feel the dollar might rise against global currencies thus resulting in an exit from riskier asset classes.

Take a Bow To Dow!....

We have seen financial panics before.
We have seen wealth erode before.
In, 1987,/, the Dow Jones , Industrial Average crashed from 2,641 on October 2nd to 1,739 on October 15th. That was a decline of -52%.In 2 weeks.
In 1998, the Dow Jones crashed from 9,338 on July 17th to 7,539 on August 31st.
That was a decline of -24%. In 6 weeks.
The current decline in the Dow is -49% from its peak of 14,093 established on October, 12, 2007. In 51 weeks.
If things are bad now, they were also pretty bad in 1987 and 1998 yet we survived as a species.


Source:
Equitymaster.com,