Skip to main content

U.S stock market indexes appeared headed for a reasonable start on Friday after Thursday's stock market rout hit investor confidence and renewed fears over the health of the financial system.

Stock market futures were slightly higher with about an hour before markets open, suggesting stocks will rise at the start. Futures for the Dow Jones industrial average rose 5 points, to 11,356. Futures for the S&P 500 rose 2 points, to 1255.

In Europe, major stock market indexes were lower on concerns about the health of financial firms and the economy. The U.K.'s FTSE 100 fell 0.6 per cent and Germany's DAX index fell 1.1 per cent in afternoon trading, after Munich Re reported a 48 per cent drop i its second quarter earnings and cut its forecast for the rest of the year. The stock fell 11 per cent. UBS AG fell nearly 8 per cent.

Story continues below advertisement

Part of the enthusiasm in the United States came from apparent relief over the durable goods orders in June, which rose 0.8 per cent, well above an expected contraction of 0.3 per cent. Not surprisingly, defense orders were very strong, but vehicles and parts also rose 1.8 per cent, suggesting that there is some hope for the economy.

However, money management firm Legg Mason Inc. reported a $31.3-million loss in its fiscal first quarter, with revenues down 13 per cent after some of its funds were hit by investors withdrawals. Legg Mason is perhaps best known for Bill Miller, the superstar fund manager who use to beat the S&P 500 consistently but whose winning streak has taken a turn for the worse recently.

In Canada, Loblaw Cos. Ltd. reported that its earnings rose 18 per cent in the second quarter, to $140-million or 51 cents a share. That nudged past expectations from analysts for earnings of 50 cents a share. However, the supermarket chain's revenue rose just 1.5 per cent, slightly missing estimates.

Report an error

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at