A Peek Into The Market Before The Trading Starts

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.

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%.

Goldman Sachs is remaining Neutral on Brocade Communications Systems, Inc.

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.

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