Credit: Shutterstock photoStocks are climbing again today as buyers return with few potential risks visible in the near term.
S&P 500 futures are up 0.25 percent, matching gains of a similar magnitude in Europe. Asia was mostly positive overnight, led by a rebound of almost 3 percent in China. Commodities and currencies associated with bullish sentiment are climbing as well.
The S&P 500 has spent March consolidating above its previous high of 1850 while several high-profile issues resolved favorably: Tensions in Crimea have eased, the Federal Reserve's last meeting concluded, banks have passed stress tests confirming their health, and China's financial worries have been limited. Economic numbers in the United States have also been strong as jobless claims beat expectations for three weeks straight and forward-looking surveys by the New York and Philadelphia Feds surpassed estimates by wide margins.
The index has also been making higher lows and closed above its 10-day moving average yesterday. This suggests that momentum is turning bullish in the short term while few events are scheduled through the end of next week. (See related calendar story)
Financials are the strongest sector in the last week, making up lost ground in preceding months, led by retail brokerages and banks. Investors have also favored companies that will benefit from a strong macroeconomic backdrop--especially semiconductors, energy frackers, and land-based drillers, according to our researchLAB market-analysis tool. Steel makers have been returning to life in the last week as well. Gold and silver miners are falling from grace again, while retailers and 3-D printing stocks have been getting sold.
In company-specific news, Symantec is indicated down by 10 percent after firing it CEO. Nike fell 2.5 percent after warning about slow growth in emerging market such as China. CommScope, a provider of networking equipment that went public in October, is surging 14 percent after raising full-year guidance. Tiffany dropped more than 3 percent after missing estimates.
Oil is up almost 0.5 percent, and copper is up more than 1 percent. Precious metals are fractionally higher, and most agricultural products are down.
The main story in foreign-exchange markets is U.S. dollar weakness. The euro and Australian dollar are higher against the safe-haven Japanese yen--signs of risk appetite.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
