Markets

Stocks advance as optimism reigns

Stocks are climbing again today as capital keeps streaming into the market.

S&P 500 futures are up more than one-third of a percent at the time of this writing, while European indexes have surged by 1 percent to 2 percent. Asian markets also rallied strongly overnight, led by a 2 percent gain in Shanghai. Commodities are green across the board.

Today's strength follows stronger-than-expected purchasing managers indexes in Europe and after buyers pounced on yesterday's selloff in China. Conditions appear to remain favorable for stocks overall, with the global economy continuing to expand. Political risks also seem to be receding after debt problems were addressed in Europe and U.S. budgetary sequestration failed to trigger a broader crisis.

The S&P 500 has also managed to hold its ground in the last four sessions after rebounding smartly from a Feb. 25 selloff. It has stayed above its 10-day moving average for that time, a potentially bullish signal.

Attention now shifts toward the Institute of Supply Management's non-manufacturing index at 10 a.m. ET. Tomorrow the market will focus on the release of ADP's private-sector payroll report and the Federal Reserve's Beige Book report of economic conditions. Thursday's calendar features German manufacturing data and February same-store sales, while Friday brings the all-important monthly jobs report.

Oil is up by about one-third of a percent and copper is gaining by half a percent. Precious metals are also rebounding from a recent drop, sending gold up by 0.6 percent, while silver and platinum are adding more than 1 percent. Agricultural commodities are higher across the board.

Foreign exchange is more mixed, with the euro, Australian dollar and Canadian dollar slightly higher against the U.S. currency. The safe-haven Japanese yen, however, is posting small gains across the board.

In company-specific news, Ascena Retail is indicated higher after earnings and revenue beat expectations. J.C. Penney is down about 4 percent on a report that Vornado Realty Trust plans to sell half its stake in the struggling department store.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SPX

Other Topics

Options

Latest Markets Videos