Stock futures are continuing to climb today following
yesterday's big rally.
The S&P 500 is indicating an open higher by about 0.5 percent,
matching similar moves in the Dow Jones Industrial Average and the
Nasdaq. Gains are even greater overseas, where most indexes
advanced 1 percent to 2 percent after the Federal Reserve said it
would flood the financial system with liquidity in hopes of driving
job growth. The action was stronger than most expected, driving
capital into weak-dollar assets such as the euro, materials,
energy, and metals.
The trend is continuing this morning as oil and natural gas climb
by almost 2 percent. Copper advanced more than 3 percent, and
agricultural foodstuffs are higher across the board. Buying appears
to have shifted away from precious metals for the time being, with
gold up only slightly and silver posting a small decline.
Oil prices have also gotten a boost from worries about unrest in
the Middle East. Japan revised higher its industrial production
figures for July, which provides more ammunition to hopes of
Foreign exchange shows all of the traditional "risk appetite"
correlations at work, with the U.S. currency lower against the
euro, Canadian dollar, and Australian dollar. The Japanese yen is
down against other currencies across the board, which usually
occurs when investors seek turn bullish toward stocks and
Momentum continues for stocks in the materials sector. Metals
producer Rio Tinto is indicated higher by 4 percent, U.S. Steel is
up 2 percent, and coal miner Cliffs Natural Resources is gaining 3
percent in pre-market trading. Bank of America and Citigroup are
both up more than 1 percent.
In other company-specific news, Analogic rallied about 10 percent
yesterday afternoon following a strong quarterly profit report.