General Growth Properties Inc GGP.N, the second largest U.S. mall owner, on Thursday filed for Chapter 11 bankruptcy protection from its creditors, making it one of the biggest victims of the credit crisis yet.
[B]What To Watch For In The US Session
• General Growth Properties Files For Bankruptcy
• JP Morgan Reports Better Than Expected Earnings
• Housing, Employment and Manufacturing Data Ahead
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General Growth Properties Bankruptcy May Offset JP Morgans Strong Earnings and Sink Markets[/B][/U]
General Growth Properties Inc GGP.N, the second largest U.S. mall owner, on Thursday filed for Chapter 11 bankruptcy protection from its creditors, making it one of the biggest victims of the credit crisis yet. The news demonstrates that the commercial real estate market is experiencing the same ills as the residential which could push out expectations for a U.S. recovery. Today’s fundamental docket will also add to investor concerns as housing starts are expected to slip to 540,000 after February’s unexpected surge to 583,000. Meanwhile, initial jobless claims are forecasted to fall to 660,000 from 654,000 which should add to current growth fears as the fundamental data demonstrates that the labor market continues to deteriorate which will threaten any recovery in the housing sector and the broader economy. On a positive note JP Morgan Chase reported better than expected quarterly earnings of $0.40 per share versus forecasts of $0.32 which continues the streak of positive results from the banking sector.
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Dow Jones 8029.62[/B]
The DJIA futures ended yesterday on a strong note led by a 6.9% increase in financials. The sector may continue to receive support on the back of JP Morgan’s positive results. However, China’s slowest GDP figures in almost a decade have raised global growth concerns which could weigh on the blue chip index.
[B]NASDAQ 1626.80[/B]
The Nasdaq is the major index which is seeing its futures trade in positive territory. The tech laden index was able to shake off the dour Intel outlook and finish in positive territory yesterday on the back of a 4% gain in financials. We could see interest return to the tech sector as it remains the most attractive short and long-term.
[B]S&P 500 852.06[/B]
The broader index could be weighed by a dismal housing and labor report as domestic growth concerns are already heightened by the General Growth Properties bankruptcy. Again, financials could save the day for the S&P 500 as they still account for nearly 13% of the index.
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