Stocks: Bumpy ride ahead

  @CNNMoneyInvest May 29, 2013: 9:00 AM ET
SP 840
NEW YORK (CNNMoney)

After a day of significant gains, U.S. markets were pointing to a lower open Wednesday.

U.S. stock futures were indicating that the market would step back from Tuesday's heady heights, when the Dow Jones industrial average set another record closing high.

It should be a quiet day on Wall Street, with few economic and earnings reports on tap. Overseas, the International Monetary Fund cut the growth forecast for China, the world's No. 2 economy. The IMF raised concerns about a rapid expansion in credit there and the ability of borrowers to repay the loans.

China brings home the bacon. Smithfield Foods (SFD, Fortune 500) shares surged in premarket trading after the pork processor and hog producer agreed to be bought by Chinese meat processor Shuanghui International in a deal valued at $7.1 billion.

The news lifted shares of rival meat processor Tyson Foods. (TSN, Fortune 500)

Undertaker takeover. Service Corporation (SCI), which provides "deathcare products and services," announced plans to buy rival Stewart Enterprises (STEI) for $1.4 billion. Shares of Stewart Enterprises surged in early trading. The deal between two of the larger players in the funeral business is subject to regulatory approval.

Apple (AAPL, Fortune 500) shares were lower after an appearance at the AllThingsD conference by CEO Tim Cook Tuesday evening. Cook was evasive about the company's product plans, saying only that the iPhone maker was looking for more "game changers" in its future and that he considered the wearable computing product segment " "incredibly interesting."

Citigroup (C, Fortune 500) reached a settlement with the Federal Housing Finance Authority in a suit charging it deceived Fannie Mae and Freddie Mac when it sold the housing finance firms mortgage securities during the housing bubble.

Related: Fear and Greed Index

U.S. stocks surged Tuesday following strong reports on the housing market and consumer confidence. The Dow added 106 points to close at a record high, the Nasdaq gained 0.9% and the S&P 500 rose by 0.6%.

The S&P/Case-Shiller Index showed Tuesday that housing prices rose 10.2% during the first quarter, the biggest increase since 2007. The Conference Board's consumer confidence index, meanwhile, hit a five-year high.

Stocks: Bulls vs. bears

All European markets were lower in morning trading. After rising by 1.7% Tuesday, London's FTSE 100 index fell by 1.2%.

Meanwhile, markets were mixed in Asia. Tokyo's Nikkei and the Shanghai Composite index both closed up by 0.1%. The Hang Seng dropped by 1.6%, with nearly every company in the index in the red. To top of page



Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 16,408.54 -16.31 -0.10%
Nasdaq 4,095.52 9.29 0.23%
S&P 500 1,864.85 2.54 0.14%
Treasuries 2.72 0.08 3.19%
Data as of 7:54pm ET
Company Price Change % Change
Bank of America Corp... 16.15 0.00 0.00%
Facebook Inc 58.94 0.00 0.00%
General Electric Co 26.56 0.00 0.00%
Cisco Systems Inc 23.21 0.00 0.00%
Micron Technology In... 23.91 0.00 0.00%
Data as of Apr 17
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.36%4.24%
15 yr fixed3.39%3.26%
5/1 ARM3.36%3.27%
30 yr refi4.34%4.22%
15 yr refi3.38%3.24%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.