Stocks are rebounding on strong employment data and hopes of a hopes for a solution to the Greek crisis.
S&P 500 futures are up 0.8 percent. Europe is higher across the board, led by a gain of almost 3 percent in Milan and about 2 percent in Paris and Frankfurt. Asia was mixed overnight, with Shanghai tumbling 5 percent but Hong Kong, Seoul and Mumbai up about 1 percent.
ADP reported that private-sector businesses added 237,000 jobs last month, beating forecasts for a gain of 220,000. Attention will now turn to the Institute for Supply Management's manufacturing index at 10 a.m. ET. There was also a report that Athens may concede to creditors after slipping into arrears on its International Monetary Fund payment last night.
The S&P 500 began the week with its biggest drop since early 2014 but managed to stay above its 200-day moving average and within this year's range.
While the Greek debt crisis has been the main story in recent weeks, it comes against the backdrop of improving economic growth in Europe and Japan, as well as the United States. Yesterday, for instance, consumer confidence beat estimates by a wide margin and today Japan's Tankan survey was stronger than expected.
Investors have responded by piling into consumer discretionaries like retailers and homebuilders. Biotechnology, health-care, oil refiners, and Japanese banks have been strong as well, according to optionMONSTER's proprietary researchLAB market scanner. Agricultural stocks are also showing signs of life following years of weakness. Metals and semiconductors have lagged.
In company-specific news today, railroad supplier Greenbrier dropped 6 percent after earnings and revenue missed estimates. Insurer Chubb surged more than 30 percent after accepting a $28 billion takeover by Ace, which also gained 10 percent on the news.
Oil declined more than 1 percent. Bond prices are also continuing to fall, which reflects confidence in the economy and a belief that the Federal Reserve remains on track to raise interest rates. There are no big movers in the currency markets.
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