Stocks continue to rebound today, led by gains overseas.
S&P 500 futures are up 0.3 percent, while most of Europe is gaining about 1 percent. Shanghai was the standout leader in Asia overnight, surging more than 2 percent after Premier Li Kequiang said he's willing to prop up growth with government spending.
The S&P 500 has been trying to stabilize at its 100-day moving average in the last four sessions after pulling back from all-time highs in late February. Improving economic numbers in the United States and Europe have helped sentiment, though investors are anxious that the Federal Reserve may signal on Wednesday that higher interest rates are coming.
That's caused them to shun utilities, energy, and metals, according to our proprietary researchLAB market scanner. But they've started buying financials again and continued to amass positions in media companies, biotechs, and auto makers. Airlines have also been returning to favor after several months of underperformance.
There are several other noteworthy events this week, with a focus on housing. The New York branch of the Fed releases its Empire manufacturing index at 8:30 a.m. ET today, and the national Fed announces industrial production and capacity utilization at 9:15 a.m. ET. NAHB's homebuilder sentiment gauge follows at 10 a.m. ET. Tomorrow brings housing starts and building permits, plus earnings from Oracle and Adobe in the afternoon. FedEx repots Wednesday morning.
Homebuilders Lennar and KB Home follows on Thursday and Friday morning, respectively. Nike is scheduled for Thursday afternoon.
In company-specific news, Salix Pharmaceuticals and Valeant Pharmaceuticals rose about 1.5 percent after reportedly agreeing to a cash buyout by VRX. Medtronic and Edwards Lifesciences may be active after presenting positive data for their heart products at the American College of Cardiology meeting over the weekend. The CEO of Madison Square Garden also jumped ship for Sotheby's.
Oil slid more than 1 percent and is desperately clinging to the lows from late January. Gold and silver rose fractionally, and copper is little-changed. The euro is also trying to stabilize after plunging to levels last seen in 2003.
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