Stocks are climbing this morning before the release of key jobs
S&P 500 futures are up 0.4 percent, while most European markets
are up about 1 percent. Asia was mixed in the overnight session,
with Tokyo and Hong Kong up slightly but Shanghai and Seoul ending
The Labor Department announces December non-farm payrolls at 8:30
a.m. ET. Economists are looking for the addition of 197,000 jobs
and a 7 percent unemployment rate. Investors are mainly concerned
that especially strong numbers will induce the Federal Reserve to
remove monetary stimulus sooner rather than later. But such fears
have existed for months and the Fed already started tapering bond
purchases, so the news may already be priced in.
Equities are in the midst of their strongest run in years as the
economy continues to improve and capital returns to the market. No
single group or sector has dominated performance, though the last
week has seen renewed buying in health care, financials, airlines,
. Internationally, our
market scanner shows sentiment shifting in favor of Europe and away
such as China.
Going forward, attention will turn to earnings. Major banks
including JP Morgan, Wells Fargo, Bank of America, Citigroup,
Goldman Sachs, and Morgan Stanley all report earnings next week.
Intel and General Electric are also on the docket.
Another recent trend has been weakness in retailers, especially
those targeting lower-end shoppers. Sears Holding and Five Below
both pre-announced weak fourth-quarter results yesterday afternoon
and are down more than 10 percent this morning. Gap and Abercrombie
& Fitch, however, climbed on strong reports. Indian outsourcing
company Infosys rose 3 percent after beating expectations and
raising guidance. Alcoa is down 6 percent after missing estimates.
Commodities are mostly higher. West Texas Intermediate crude oil is
up more than 1 percent while Brent crude has advanced by about half
a percent. Gold, silver, and copper are posting smaller gains.
Agricultural products are mixed.
The main theme in currency markets is modest weakness in the
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.