Stocks are climbing again today as the market begins a holiday
week with some key economic data.
S&P 500 futures are up almost half a percent. European markets
are up across the board, led by higher-risk countries such as Spain
and Italy. Asian markets mostly climbed in the overnight session as
Japan's Nikkei advanced more than 1 percent and Hong Kong added
almost 2 percent.
The S&P 500 has retraced about one-third of its pullback that
occurred between May 22 and June 24. Investors have been reacting
to increasingly upbeat economic news in developed markets such as
the United States, Japan, and Europe, while developing countries
like China, India, and Brazil have struggled.
Earlier today, for instance, Japan's Tankan manufacturing sentiment
turned positive for the first time in two years while China's
industrial activity declined in June. Attention will now focus on
the U.S., where the Institute of Supply Management reports its
manufacturing index at 10 a.m. ET.
ADP's private-sector payrolls follow on Wednesday morning and the
national employment-situation report is scheduled for Friday.
Market activity is interrupted by Independence Day on Thursday,
July 4. There is also an early close at 1 p.m. on Wednesday, so
volumes are likely to be very light as the week progresses.
Strength has been scattered across several areas in the market as
stocks bounced in the last week. Utilities and real-estate
investment trusts have led the advance as they rebound from a
selloff in May. Consumer-discretionary names such as automakers,
mobile homes and luxury mattresses have been even stronger, while
financials have also regained their bullish momentum from earlier
in the year. Emerging markets and precious metals have also been
trying to recover from major selloffs. Energy and materials have
Foreign-exchange and commodity markets are showing patterns that
are typical in a bullish market, with the euro and Australian
dollar up and the Japanese yen lower across the board. Oil rose
two-thirds of a percent and copper surged more than 2 percent.
Agricultural foodstuffs are modestly higher. Gold is up 1 percent
and silver is down slightly. Both could see heavy activity as they
sit near multi-year lows.
In company-specific news, Onyx Pharmaceuticals is rocketing 50
percent after rejecting a takeover offer from Amgen and announcing
it would seek other buyers. InterDigital is indicated lower after
losing a mobile-technology patent ruling against foreign companies