Stocks are higher this morning, continuing to recover from a
S&P 500 futures are up almost half a percent and near their
highs of the morning, while European indexes show fractional gains.
Asian bourses were led by a 3 percent rally in Tokyo overnight.
Equities have been trying to recover from their biggest drop of the
year after bottoming on Monday. Economic data has mostly been
positive in the United States and Europe, but the market has been
worried about weakness in emerging markets and the possibility of
higher borrowing costs as the Federal Reserve reduces asset
Bond yields are indicated lower this morning, however. Stocks
sensitive to interest rates, such as utilities, real-estate
investment trusts, and financials have all outperformed the broader
market in the last week, reflecting a belief rates are done
climbing for now. The Eurozone also reported better-than-expected
economic confidence earlier today.
The next big events on the calendar are initial jobless claims at
8:30 a.m. ET today, the Institute for Supply Management's
manufacturing index on Monday, and employment data later next week.
Japan also reports a slew of economic data tonight, which could
potentially sway market sentiment Friday morning. Most numbers from
the Asian country have been strong recently.
Commodities and foreign-exchange markets reflect a benign
sentiment: Oil rose about one-third of a percent, copper by
one-quarter of a percent, and silver by two-thirds of a percent.
The euro, Australian dollar, and Canadian dollar are all higher
against the greenback, while the Japanese yen is down across the
board. Those are classic "risk-on" correlations.
In company-specific news Progress Software is indicated higher
after reporting strong quarterly results and announcing a $100
million share buyback. Clearwire and Dish Network may be active
after DISH abandoned its takeover attempt for the broadband
company. Winnebago also rose after third-quarter revenue increased
more than analysts expected.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.