Week Ahead Market Report: 6/1/2010

(MarketNewsVideo.com) -- Good morning, I'm Sayoko Murase, with the Week Ahead Market Report for June 1, 2010.

In overseas equity markets this morning, the Hong Kong's Hang Seng index dropped 1.4 percent. Japan's Nikkei 225 edged lower 0.6 percent and China's Shanghai Shenzen fell 1.1 percent.

The German DAX dropped 1.7 percent. Britain's Footsie 100 was down by 2.1 percent.

U.S. S&P 500 index futures were trading lower in Monday's pre-market action, down 1.3 percent.

Crude oil fell over 2 percent and is hovering just over $72 a barrel this morning.

Spot gold edged higher on Tuesday morning by about 0.8 percent, trading at just over $1,226 an ounce.

The euro tumbled to a four-year low against the U.S. dollar, trading as low as 1.212 Tuesday on euro zone banking worries.

Investor concerns on the health of European banks were back in play on Friday when Fitch Ratings removed Triple-A status from Spain. Adding to investor worries on Monday, the European Central Bank stated that euro-zone banks would likely write down $239 billion in loans over the next two years.

Shares of BP (BP) collapsed in London trading late Tuesday, falling 14 percent and wiping out $19 billion off its market capitalization. The company continues to struggle with stemming the flow of oil at a deep-water oil well in the Gulf of Mexico. The most promising solution drilling relief wells won't be completed until August.

On the economic front, pending home sales will be released on Wednesday with sales expected to have grown by 4.35 percent in April. March home sales were 5.3 percent.

On Friday, several employment-related figures will be released. Expectations are for an additional 540,000 jobs added in May, up from 290,000 jobs in April. Major hiring of temporary census workers will be responsible for most of the boost.

The unemployment rate for May is expected to remain stubbornly high at 9.8 percent compared to 9.9 percent in April.

On the earnings front, Bank of Nova Scotia (BNS) posted record second quarter earnings on Tuesday of 99 cents. The consensus estimate was 90 cents per share.

Jo-Ann Stores (JAS) will report on Wednesday. Analysts are expecting first quarter profits of 44 cents per share.

On Thursday, battery manufacturer Exide (XIDE) is expected to report 11 cents earnings per share for the first quarter.

Joseph Bank (JOSB) will post profits on Thursday as well, with Wall Street expecting 71 cents per share.

Also on Thursday, Joy Global (JOYG) will report earnings with analysts expecting 76 cents per share.

Join us on Friday for the Weekly Market Wrap and have a wonderful week.

The preceeding is a transcript of the MarketNewsVideo.com video published at: http://www.marketnewsvideo.com/?id=201006WeeklyAhead060110&mv=1.