Markets

Stocks bounce ahead of labor data

Stocks are bouncing again today, supported by gains abroad, with key job numbers looming tomorrow.

S&P 500 futures are up 0.4 percent, while European bourses have advanced 0.5 percent to 1 percent. Shanghai surged almost 2 percent overnight as China continues to recover from its big drop, and Tokyo rose 1 percent.

The S&P 500 is set to retrace most of its drop yesterday morning and is within 2 percent of its all-time high from May. The index has rallied for the last five weeks, supported by a combination bargain-hunting, good earnings, and merger activity. Investors have also grown more comfortable with the possibility of higher interest rates next month, which Federal Reserve Chair Janet Yellen said yesterday was a "live possibility."

Attention will focus on weekly jobless claims at 8:30 a.m. ET today and non-farm payrolls tomorrow morning. Most other economic reports this week, especially the Institute for Supply Management's manufacturing index and ADP's private-sector payrolls report, beat estimates by narrow margins.

In company-specific news, Facebook rallied 5 percent after earnings and revenue beat forecasts. FireEye plunged 18 percent after top-line results and guidance lagged expectations. HomeAway surged 22 percent after accepting a $3.9 billion takeover by Expedia. Whole Foods and Qualcomm also slid about 6 percent on weak numbers.

optionMONSTER's researchLAB market scanner has seen strength in a broad range of sectors in the last two weeks, with E-commerce companies and oil refiners in particular standing out. Money has also returned to groups like casinos and energy.

Most commodities are little-changed today, though copper is down almost 2 percent. Foreign-exchange markets are quiet as well.

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