Momentum carries equities higher
Equities are pushing higher again today after yesterday's strong rally.
S&P 500 futures are up about one-tenth of a percent, while most European indexes are adding one-third to half a percentage point. Asian markets surged 2 percent in the overnight session.
Stocks have rebounded sharply in the last two sessions from their first real pullback of 2013 but remain below their highs of the year. The question now facing investors is whether stocks will now break out to new levels or consolidate in a range.
The recent gains have been fueled by an improving economic backdrop and assurances from central bankers that monetary policy will remain accommodative long into the future. Investors also seem to be growing accustomed to political risk and appear to have little worries about cuts in government spending tomorrow.
Attention now shifts toward macroeconomic data. The United States will report revised gross domestic product for the second quarter and initial jobless claims, both at 8:30 a.m. ET. In the overnight session before tomorrow's open, manufacturing data will be released for China, Germany, France, and the broader Eurozone.
Currencies are painting a mixed picture. The euro is lower, while the Australian dollar is higher. The Canadian dollar is also weaker, while the Japanese yen is showing small gains. Commodities are equally indecisive, with oil and precious metals little-changed and copper up slightly. Most agricultural foodstuffs are climbing.
In company-specific news, J.C. Penney is indicated to open sharply lower after reporting a disappointing quarter, casting major doubts on a new pricing strategy announced one year ago. Groupon is also falling on a weak outlook.
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