Stocks are climbing again today as momentum remains bullish and
the news stays positive.
S&P 500 futures are up more than 0.4 percent, while Europe is
rallying more than 1 percent. Asian markets were little-changed in
the overnight session.
The S&P 500 fell slightly yesterday after making another record
close on Monday but has been inching higher as it pushes against an
earlier peak from May. If today's gains hold, it could represent a
decisive break above resistance and draw new money to the market.
Strong corporate earnings and positive economic data have kept
sentiment upbeat. Companies such as Apple, PepsiCo, Electronic
Arts, Ford, and Boeing have beaten expectations. Europe's composite
purchasing managers index also showed unexpected expansion, led by
the strongest manufacturing reading in more than two years.
The news was less sanguine in Asia, where Japanese exports grew
less than forecast and Chinese factory data disappointed.
tool has shown a wide-ranging demand for equities, with no single
sector dominating performance. In the last week, investors have
returned to the global-growth theme by favoring beaten-down
companies such as coal miners, copper producers, steel makers, and
shipping stocks. Lesser-known financials, including non-traditional
asset managers and financial guarantors, have outperformed. Riskier
indexes such as mid-caps, transports, and small-caps have led to
the upside as well.
Today's economic reports include new home sales at 10 a.m. ET and
crude-oil inventories 30 minutes later. Tomorrow is the busiest day
for data, with durable goods, initial jobless claims and Germany's
Ifo survey of business confidence on the agenda.
Metals are continuing to advance today, led by a gain of almost 1
percent by copper, and less than half a percent for gold and
silver. Energy prices are mixed, with Brent crude down and West
Texas Intermediate roughly flat. That's potentially bearish for
A weak yen is the main theme in foreign-exchange markets today as
the Japanese currency declines against all majors. The euro is also
inching higher against the U.S. dollar, while the Australian dollar
is down almost a full percent on the weak Chinese data.
Elsewhere in company-specific news, earth-moving giant Caterpillar
fell almost 2 percent after earnings and revenue missed estimates.
Management also lowered guidance. Norfolk Southern is down after
missing on weak coal shipments.
Data-storage company EMC rose 5 percent after revenue beat
consensus. General Dynamics, WellPoint, TE Connectivity, and
Wyndham Worldwide also released strong numbers.