Futures Decline Following Japan's Yen Intervention

Stock futures edged lower Wednesday after the Japanese Government intervened regarding the yen overnight - pushing the dollar sharply higher against the yen. As of 8:40 a.m. in New York the Dow Jones Industrial Average futures lost 36 points, or 0.34%, to 10494, the S&P 500 index futures were down 4.3 points to 1111.50 and the Nasdaq 100 futures fell 5.25 points to 1917.25. The dollar surged nearly 3% against the yen overnight after Japan announced it was intervening in the foreign-exchange markets to stop the yen's continuing appreciation against the dollar, making Japanese exports more expensive abroad. This was the first time Japan had intervened regarding the yen's value since 2004, according to reports, and Japanese monetary policy officials said that more interventions may be necessary in the coming months. While politically unsavory, Wall Street generally likes a weak U.S. dollar because it makes U.S. company exports cheaper abroad and therefore increases economic activity here at home. When the euro fell sharply earlier this year, stocks followed suit as traders became concerned that companies such as 3M MMM and Procter & Gamble PG would see slower business abroad because of a strong U.S. dollar. Read the rest here.