This morning, the major stock index futures are all declining before the opening bell. The highly followed S&P 500 Index e-mini futures (ES U1) are trading lower by 6.00 points to 1320.25 per contract. The catalyst for the decline is still the same, more problems in the European Union and the debt ceiling stalemate in the United States. The problems in the European Union should last throughout the entire year. Traders and investors should simply expect the problems in the EU to be fixed with temporary band aids. The debt ceiling problem in the U.S. is an entirely different problem, however, if the U.S. continues to spend money that it does not have it could wind up much like Europe.
Earnings season is starting to wind down as most of the big market moving companies have reported already. Last night after the closing bell, stocks such as Amazon.com Inc. (NASDAQ:AMZN), and Las Vegas Sands Corp. (NYSE:LVS) reported better than expected numbers. These stocks are up sharply in the pre-market. Juniper Networks Inc. (NASDAQ:JNPR) reported earnings that were well below analyst expectations, the stock is declining sharply ahead of the opening bell. Traders should expect early weakness in the computer networking sector at the start of trading this morning.