U.S. Stocks to Open Lower on European Debt Fears

Published July 23, 2012, 8:10am ET · 1 min read

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U.S. stocks are set to fall sharply at the open Monday, following a global sell-off on heightened fears that Spain will need a full sovereign bailout similar to those taken by Greece and Portugal, and concern that Greece will not fulfill its bailout commitments and will leave the eurozone. Also, a Chinese policymaker warned that the nation’s economic expansion may cool for a seventh-straight quarter.

Dow Jones industrial average, S&P 500 and Nasdaq futures are all down a little more than 1%.

The yield on the 10-year Spanish bond rose to a euro-area record high of 7.565% late Friday, while the 10-year Italian yield increased to 6.356%. The German 10-year yield sank to a record low of 1.127% and the U.S. 10-year Treasury yield fell to an all-time low of 1.405%.

Asian markets ended sharply lower. The Shanghai Composite fell 1.3%, the Hang Seng in Hong Kong ended 3% lower and Japan’s Nikkei dropped 1.9%.

In Europe, Britain’s FTSE 100 and the DAX in Germany dropped about 1.7% and France’s CAC 40 fell about 2%.

McDonald’s (NYSE: MCD) is expected to report earnings of $1.38 a share on $6.95 billion in revenue when it reports this morning. Halliburton (NYSE: HAL) reported an adjusted second-quarter profit of $0.80 a share, while revenue rose to $7.23 billion, both numbers exceeding analysts’ expectations.

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Trey Thoelcke

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, moderating workshop sessions at regional conventions.

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