The S&P 500 is poised for a potential breakout as the market
holds its breath before April's non-farm payroll report.
Futures are down slightly this morning after closing at yet another
record high yesterday. European markets are little-changed, while
Asian indexes were mixed overnight.
Economists expect that the Labor Department will announce that
155,000 jobs were added last month, up from 88,000 in March.
Perhaps even more important is the private-sector segment of the
report--excluding the public sector--forecast to show growth of
166,000. The numbers will be released at 8:30 a.m. ET.
Equities have advanced recently despite less-than-stellar data as
the market focuses on the longer-term growth story. Sentiment has
also been supported by strong earnings in the housing and
automotive industries, two key drivers of the U.S. economy.
The most interesting move this morning before the payrolls report
is the 4 percent rally in copper, often viewed as a bellwether for
global growth. Silver is also up more than 1 percent, while gold
and oil advanced half a percent. Agricultural products are mostly
higher as well.
Trading in the foreign-exchange market is reflecting a similar
pattern of risk appetite, with the euro and Australian dollar
gaining and the Japanese yen lower across the board.
market screener shows that equity flows have started to move in the
same direction, with stocks in Asia, Germany, and Russia
outperforming the S&P 500 in the last week following months of
underperformance. Conservative sectors such as health-care and
staples have also begun to lag.
In company-specific news, business-networking company LinkedIn is
indicated to fall about 10 percent on a weak second-quarter revenue
forecast. Insurance giant American International Group is up about
2.5 percent after first-quarter results surpassed estimates by a
wide margin. Software maker Teradata is poised to drop some 11
percent after earnings and revenue missed consensus.
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