The March E-mini Dow registered a new contract high during the Monday evening hours and enters the US trading hours near unchanged levels. The market took a sharp turn lower early Tuesday morning, but favorable German economic data and better than expected results from Dow Jones component DuPont helped turn the tide. Quarterly earnings from DuPont beat street estimates on both the top and bottom line, pushing its shares up by more than 1% in pre-market US trade. Other index components reporting ahead of the Wall Street opening this morning include, Johnson & Johnson, Travelers and Verizon.
Global equity markets were mostly lower during overnight trading, but generally have recovered from their lowest price levels this morning. The Bank of Japan decided to wait with starting open-ended quantitative easing measures until 2014, which pushed the Japanese Yen sharply higher and weighed on Japanese equity markets. Chinese shares came under pressure overnight due to profit warnings ahead of upcoming earnings.
The financial sector was under pressure during the early European trading, and was a key factor with the German DAX sliding as much as 1.5%. German shares rallied more than 1% from their early morning lows, aided by a much better than expected reading on that nation's investor sentiment and a favorable Spanish debt auction. US markets are finding support due to increased optimism from reports that leaders in the House of Representatives are expected to introduce a bill tomorrow to extend debt limit to May 19th.
- Investment & Company Information