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What information on futures does CNN Money provide?

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Quick Answer

The cable channel's Money web page on pre-market trading provides an estimate of the Dow Jones, NASDAQ and S&P trading averages for the next day, averages of each market as of the previous day's closing and a listing of the most traded stocks for the next day, according to CNN.com. The futures market gives an idea of what agreements are being made to buy or sell stocks when the market opens the next day.

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Full Answer

In the futures market, two investors agree to sign a contract for a fixed price on the sale of a certain number of stocks or assets, according to Investopedia.com. The cash may be paid immediately for the stock or it may be held until delivery of the stocks at a future date. Many businesses buy commodities, such as milk or gold, this way to help prevent paying for extreme cost increases. Investors prefer using this method because the buyer is locked into a price, and if the stock dips below that price in value the investor keeps the difference as profit.

CNN Money provides an idea of what the next day's stock market looks like for futures investors. If certain stocks look like they may rise in price, an investor may set up a futures contract to buy that stock at a lower price before the market opens in the hopes of reaping a profit in selling it.

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