A Peek Into The Market Before The Trading Starts

Pre-open movers US stock futures are lower, this morning after exchange of artillery fire between North and South Korea. Futures for the Dow Jones Industrial Average declined 45 points, or 0.40%, to 11,120, while S&P 500 futures dropped 11.40 points, or 0.95%, to 1,187. Futures for the Nasdaq 100 index lost 17.25 points, or 0.80%, to 2,137. A Peek Into Global Markets Negative sentiments ruled the European markets today. While STOXX Europe 600 Index has lost 0.63%, London's FTSE 100 Index moved down 0.69%. Mostly Asian markets ended in the negative territory, with Japan's Nikkei Stock Average adding 0.93%, Australia's S&P/ASX 200 moving down 1.16% and China's Shanghai Composite losing 1.95%. Broker Recommendation Goldman Sachs is remaining Neutral on Brocade Communications Systems, Inc. BRCD after the company reported earnings yesterday. It has a $5.50 price target on shares. In a note sent to clients, Goldman writes, "We remain Neutral on Brocade as estimates are moving down again on disappointing guidance. Brocade's out-quarter guidance is being impacted by expected weakness in the Federal vertical, which drives 23% of its Ethernet business, which in turn accounts for 31% of total sales. Brocade expects its Federal Ethernet business to decline around 60% qoq after rising 7% qoq in F4Q (Oct) as a result of the delay in the FY11 Federal appropriations bill, though the enterprise Ethernet business is expected to grow 10%-15% qoq. OEM SAN revenues, which drive 61% of total sales, are expected to grow below the normal seasonality of 6-8% given inventory reductions at its OEM customers (EMC, HP and IBM drive 44% of total sales)." Shares of BRCD lost 30 cents in after hours yesterday to end at $5.40. Breaking news

• Fred's, Inc. FRED today reported financial results for the third quarter and nine months ended October 30, 2010. To read the full news, click here.
• Cherokee Inc. CHKE announced today that it has entered into an exclusive license agreement for its SIDEOUT brand with Tiendas Soriana S.A. de C.V. To read the full news, click here.
• Medtronic, Inc. MDT today announced financial results for its second quarter of fiscal year 2011, which ended October 29, 2010. To read the full news, click here.
• J. Crew Group JCG is close to an agreement to be bought by TPG Capital and Leonard Green & Partners for about $3 billion, according to reports. To read the full news, click here.

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