Stocks are hovering in a range this morning after another record
S&P 500 futures are little-changed, while most European indexes
are posting small gains. Asian markets were mostly positive
overnight, led by a 2 percent rally in Tokyo.
The S&P 500 surged more than 1 percent yesterday and is up more
than 6 percent from its lows less than a month ago. It's been
surging as money streams into equities following years of
pessimism. There are also few events that seem to endanger the
rally, with budgetary battles in Washington and debt worries in
Europe receding into the past. Even poor economic numbers from
Germany, France and Italy earlier this morning failed to incite
There are several minor data points in the United States today,
including mortgage purchase applications, producer prices, the New
York Federal Reserve's Empire Manufacturing Index, and the NAHD's
housing-market survey. Tech giant Cisco Systems issues results
after the close.
Price performance across the market continues to reflect
bullishness as riskier sectors such as small-caps and transports
have outperformed in the last month. A rotation into beaten-down
global stocks also seems to be developing as groups including
Chinese Internet companies, emerging-market telecoms, and rare
elements have led the gains on our
analysis tool in the last week.
Commodities are painting a bearish picture today as sellers hammer
copper, precious metals, and agricultural foodstuffs. Oil is also
down by about 1 percent. Currencies are mixed, with the euro and
Australian dollar lower against the greenback. But the Japanese
yen, which tends to move in the opposite direction as stocks, is
In company-specific news, Agilent Technologies is up modestly after
second-quarter results beat expectations. Gap is also climbing
after being raised to "buy" from "neutral" at Citi. Research in
Motion is down more than 2 percent after getting downgraded to
"market perform" at Bernstein.
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