Stocks are higher this morning, continuing to recover from a five-week selloff.
S&P 500 futures are up almost half a percent and near their highs of the morning, while European indexes show fractional gains. Asian bourses were led by a 3 percent rally in Tokyo overnight.
Equities have been trying to recover from their biggest drop of the year after bottoming on Monday. Economic data has mostly been positive in the United States and Europe, but the market has been worried about weakness in emerging markets and the possibility of higher borrowing costs as the Federal Reserve reduces asset purchases.
Bond yields are indicated lower this morning, however. Stocks sensitive to interest rates, such as utilities, real-estate investment trusts, and financials have all outperformed the broader market in the last week, reflecting a belief rates are done climbing for now. The Eurozone also reported better-than-expected economic confidence earlier today.
The next big events on the calendar are initial jobless claims at 8:30 a.m. ET today, the Institute for Supply Management's manufacturing index on Monday, and employment data later next week. Japan also reports a slew of economic data tonight, which could potentially sway market sentiment Friday morning. Most numbers from the Asian country have been strong recently.
Commodities and foreign-exchange markets reflect a benign sentiment: Oil rose about one-third of a percent, copper by one-quarter of a percent, and silver by two-thirds of a percent. The euro, Australian dollar, and Canadian dollar are all higher against the greenback, while the Japanese yen is down across the board. Those are classic "risk-on" correlations.
In company-specific news Progress Software is indicated higher after reporting strong quarterly results and announcing a $100 million share buyback. Clearwire and Dish Network may be active after DISH abandoned its takeover attempt for the broadband company. Winnebago also rose after third-quarter revenue increased more than analysts expected.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.