Credit: Shutterstock photoStocks are higher this morning, attempting to rebound from last week's sharp selloff.
S&P 500 futures rose 0.4 percent, matching the gains in Europe. Asian markets were even stronger overnight, with Shanghai surging almost 2 percent and Mumbai climbing almost 1 percent.
Some of the gains followed news that Portugal will bail out struggling lender Banco Espiritu Santo. Israel also declared a seven-hour ceasefire to its operations in Gaza.
The S&P 500 is down almost 3 percent in the last week, erasing two months of upside. The drop came as momentum slowed and the index formed a double-top below 2,000. It's currently attempting to hold lows from early June. Thursday and Friday also marked the first closes below the S&P 500's 50-day moving average since mid-April.
While United States equities have struggled, most other global markets have been strong -- especially China, Hong Kong and Korea. Our proprietary researchLAB scanning tool also shows semiconductors, retailers and metal producers outperforming the market in recent weeks as investors price in strong economic growth.
The bigger question now facing traders is whether to buy the current pullback or whether it's the start of a bigger decline. There are fewer catalyst this week to help inform that decision. Today's agenda is relatively quiet, while tomorrow brings the Institute for Supply Management's service-sector index and factory orders. The next big catalysts come Thursday morning: the European Central Bank's monetary announcement, jobless claims, retailer same-store sales and German industrial production.
In company-specific news, fashion retailer Michael Kors rose almost 4 percent after earnings and revenue rose more than expected. Management also raised guidance. Amgen is indicated higher by 4 percent after reporting positive data for its relapsed multiple myeloma treatment Kyprolis.
Commodities are holding their ground, led by a 0.3 percent gain by copper, and currencies are little changed.
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.
