Stocks are up slightly this morning with gains across the
S&P 500 futures are fractionally higher while most European
indexes rose by less than half a percent. Asia was mixed in the
overnight session, with Shanghai falling almost a full percentage
point after the People's Bank of China declined to perform
liquidity operations. The move came as home prices on the mainland
increased at their fastest pace in more than three years and
leading indicators accelerated in September.
Investors are also waiting for last month's non-farm payrolls
report at 8:30 a.m. ET. Originally scheduled for Oct. 4, the
release was postponed because of the recent government shutdown. It
will probably affect sentiment less than normal because of the
The S&P 500 eked out a new record high yesterday and has risen
in eight of the last nine sessions after bouncing at its 100-day
moving average earlier in the month. While the Russell 2000
small-cap index led for most of this year's run, the Nasdaq 100 has
stood out in the last week as the tech-heavy index pushes to levels
last seen during the 2000 dot-com bubble.
market scanner has also shown strength among European banks,
solar-energy stocks, office-supply retailers, oil refiners, and
precious metals have shown strength over the last week.
Corporate results are the main item on the agenda this week, with
few important economic events on the calendar. Netflix.com is
indicated to open higher by 9 percent after profit beat
expectations and the company added 1.3 million streaming customers.
VMware rose 10 percent after earnings and revenue beat. Lockheed
Martin also inched higher on strong results. Texas Instruments is
likely to fall after issuing weak guidance. Discover Financial and
Rent-A-Center were also indicated lower after earnings missed
This morning's other big names Delta Air Lines, DuPont, Travelers,
United Technologies, and Whirlpool. Amgen and Juniper Networks
report in the afternoon. (Use researchLAB's
dedicated earnings links
to quickly review results this season.)
Commodities and foreign-exchange trading are mixed but support
risk-taking. Copper and the Australian dollar are both slightly
higher, a sign of confidence in the global economy. The safe-haven
Japanese yen is also down across the board and continues a
weakening move begun earlier in the month. Brent crude oil is up
more than half a percent, while West Texas Intermediate fell half a
percent--a combination of price action that tends to support
Precious metals are surrendering some of their recent gains and
agricultural products are lower. The euro is also posting a small
loss against the U.S. dollar as the common currency pauses near a
long-term resistance level from February.
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