Stocks are rebounding from a modest pullback yesterday, lifted
by strong economic numbers from China.
S&P 500 futures are climbing about 0.4 percent, while the
Nasdaq 100 and Russell 2000 indexes are posting smaller gains. Most
European markets are up about half a percent. Asia was mixed in the
overnight session, with Tokyo advancing slightly and Shanghai
falling almost 1 percent.
A survey of purchasing managers in China showed manufacturing
accelerating at its strongest pace in seven months. Similar surveys
for Europe were less impressive, especially in regional leader
Attention now turns to corporate earnings and United States data.
Ford Motor is up 3.5 percent after results beat expectations and
management raised guidance. Homebuilder PulteGroup is also climbing
after higher prices drove a strong set of numbers. Tech names
Symantec and Akamai fell on weak guidance, while
semiconductor-equipment company Lam Research is muscling its way
The S&P 500 has been climbing almost uninterrupted since
bouncing near its 100-day moving average on Oct. 9. Highly
leveraged financials, such as Fannie Mae and Freddie Mac, bond
guarantors, and private-equity firms, have led the advance thanks
to improved credit quality.
market-intelligence tool has also shown strength in oil refiners,
solar stocks, and metals during that period. On a broader sector
level, industrials, materials, and real-estate investment trusts
have outperformed as well.
The Labor Department will announce initial jobless claims at 8:30
a.m. ET, followed by Markit's index of manufacturing activity 28
minutes later. The data could move markets as investors try to
anticipate the tone of the Federal Reserve's monetary announcement
next Wednesday, Oct. 30.
Commodities and modestly bullish, with oil and copper eking out
small gains. Gold and silver rose more than half a percent, while
agricultural products are lower. U.S. dollar strength is the main
theme in foreign-exchange markets as the euro, yen, and Australian
and Canadian dollars all decline against the greenback.