U.S. Markets May Follow Asian and European Markets Lower

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By Trey Thoelcke Published
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The U.S. markets appear to be set to follow Asian and European markets lower.

Standard & Poor’s 500 Index could end a three-day rally, even as companies reported better-than-expected earnings in the second quarter. According to Bloomberg, 78 of 110 companies in the S&P 500 that have reported results so far have exceeded analyst estimates. Earnings of 29 companies fell short of estimates.

The focus of investors will be on more corporate earnings, as well as the eurozone meeting on the Spanish bank bailout. General Electric (NYSE: GE) and Schlumberger (NYSE: SLB) beat Q2 earnings estimates in this morning’s reports. Xerox (NYSE: XRX) is on tap to share its results too.

European investors appear to be taking a breather. Shares of Vodafone Group (NASDAQ: VOD), Europe’s largest mobile-phone company, retreated after it posted disappointing quarterly service. And European finance ministers continue to discuss the terms for the Spanish bank bailout.

At last check the FTSE 100 and the DAX were both down about 0.5% and the CAC 40 had retreated about 0.8%.

Asian stocks ended mostly lower Friday. Japanese financials and utilities dragged on the Tokyo market, but strong gains in telecom shares helped lift Hong Kong.

Friday, Japan’s Nikkei closed 1.4% lower. Hong Kong’s Hang Seng Index HSI ended 0.4% higher. For the week, the Hang Seng rose 2.9%, the Shanghai Composite slipped 0.8%, and the Nikkei ended 0.6% lower.

Photo of Trey Thoelcke
About the Author 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. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

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, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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