Stock futures are little-changed this morning after another
record close last week.
European markets are trying to inch higher after Asia posted
marginal gains overnight. Commodities and currencies are sounding a
slightly cautious tone, with oil, copper, and the euro all
The S&P 500 advanced 0.31 percent to 1680 on Friday. While it
was the second record close in a row, the index remains below its
intraday peak of 1687 from May 22. The Dow Jones Industrial Average
is also below those springtime levels on its respective chart. The
Russell 2000 small-cap index has broken out above its all-time
highs from two months ago, while the Dow Jones Transports remain
below their previous high.
The United States economy appears to be in its best shape in more
than half a decade, punctuated by improvements in the job and
housing markets and strengthening demand for big-ticket consumer
items. Weakness in emerging markets has also helped staunch
inflation, giving the Federal Reserve license to keep interest
Attention today will focus on Citigroup's second-quarter earnings
at 8 a.m. ET, followed by national retail sales half an hour later.
Both have the potential to impact sentiment. Goldman Sachs, Johnson
& Johnson, Mosaic, Coca-Cola, CSX and Yahoo follow tomorrow.
market scanner shows price performance favoring
consumer-discretionary stocks and financials over the last month.
Materials have lagged because of weakness in metals stocks.
Oil and copper are both down more than half a percent, and most
agricultural foodstuffs are also falling. The declines come after
Chinese economic growth slowed to 7.5 percent in the second quarter
from 7.7 percent in the first three months of the year.
The Japanese yen is down across the board today, especially against
the U.S. dollar. That is potentially bullish for stocks despite the
weakness in commodities.
In company-specific news, Leap Wireless is set to more than double
after agreeing to be purchased by AT&T. Shares are now trading
well above the $15 offer price, so investors apparently think that
it will be raised. Calls spiked in the Leap ahead of the
late Friday afternoon
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