November 26, 2012-Market Sentiment Sours on Euro Zone Uncertainties

Sentiment on Wall Street appears to be souring following a build up in optimism that was evident for much of last week. The major U.S. index futures point to a moderately lower opening. Eurozone uncertainties remain the principal culprit, as the situation in troubled nations such as Greece and Spain weigh on sentiment. Spain kicked up fears after regional elections in Catalonia threw up results in support of pro-independence parties, while eurozone finance ministers continue to wrangle over whether Greece should get additional financing or not. Added to these, domestic fiscal concerns simmer, failing to provide a clear direction to the markets. The Dow futures are down 45 points and the S&P 500 futures are slipping 5.40 points, while the Nasdaq 100 futures are declining 7.25 points. U.S. stocks advanced in the week ended November 23rd, as traders picked up bargains after the recent sell-off on hopes that the economic travails are not insurmountable. For the holiday-shortened week ended November 23rd, the Dow Industrials added 3.35 percent and the S&P 500 Index closed up 3.62 percent, while the Nasdaq Composite rose 3.99 percent. A few housing data and several Fed speeches are likely to predominate proceedings on Main Street in the unfolding week. Traders could seek more clarity on the recent housing market revival from some housing market data, including the Commerce Department's new home sales report for October, the results of house price surveys by the S&P/Case-Shiller and the Federal House Finance Agency and the National Association of Realtors' pending home sales index for October.