Stocks are trying to climb again today, but face potential
resistance and weakness overseas.
S&P 500 futures are up about one-tenth of a percent, while
European indexes have been struggling all morning and are now down
by half a percent to a full percentage point. Asia climbed in the
overnight session after yesterday's 0.5 percent gain in the United
States, led by Australia and Japan.
Equities have been climbing in the last week as the market rebounds
from its sharpest selloff of 2013. Economic data, such as
yesterday's manufacturing index from the Institute of Supply
Management, has remained positive, and attention now turns to
private-sector payroll data tomorrow and non-farm employment on
Auto sales are the only item on today's calendar. Markets also
close early tomorrow and remain shut on Thursday for Independence
Day, so volumes will fade as the week progresses.
Strong data has supported sentiment, but the S&P 500 is now
pausing around the same level where it bounced in early June and
below its 50-day moving average. That could make some chart
watchers expect another pullback in coming sessions.
market scanner has shown a bias toward risk taking as investors
favor small-caps, transports and sellers of expensive discretionary
items like motor homes, speedboats, and motorcycles. Emerging
markets have also been trying to bounce in the last week.
Foreign-exchange and commodity markets are painting a mixed
picture, with the euro, Australian dollar, and copper lower while
the Japanese yen is higher against most other currencies. Precious
metals are little-changed. Oil is inching higher.
In company-specific news, Achillion Pharmaceuticals is indicated
sharply lower after regulators halted trials of its prospective
hepatitis-C drug. Zynga is gaining on news that it has hired a new
CEO, and Xyratex is up after a strong earnings report. A Schulman
has fallen on weak results.
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