Stocks are pushing higher today as economic data continues to impress.
Japan's machine orders fell much less than feared in June while German investor confidence rose more than expected. It follows a stream of positive reports in the last two weeks showing an acceleration of industrial activity and trade in Europe, Asia, and North America.
S&P 500 futures are up about three-tenths of a percent, matching gains of a similar magnitude in Europe. Japan's Nikkei led Asia with a 2.6 percent gain as the yen fell sharply against other major currencies.
Equities have been fluctuating in a range for the last month, finding support above their May peaks but also unable to break out to new highs. Price action has remained mostly bullish during that time as stocks associated with global growth try to rebound from years of weakness: Metals, materials, coal miners, Spanish stocks and Latin American banks have all outperformed in the last month. (See our proprietary researchLAB market scanner for more.)
Recent weeks have also seen momentum return to more-established high fliers such as mortgage-servicing companies, staffing agencies, real-estate service firms, and gun makers.
Retail sales for July will be announced at 8:30 a.m. ET, and could affect sentiment, especially in consumer discretionary stocks. Export and import prices come out at the same time but are less likely to move stocks. Technology companies JDS Uniphase and Cree report earnings after the closing bell.
The Japanese yen is down more than 1 percent against the dollar, euro, and British pound. That's bullish because the yen is usually treated as a safe haven that gets bought when fear increases. Other currencies associated with risk appetite, such as the euro, Australian dollar, and Canadian dollar, are down slightly against the greenback.
Commodities are mixed but mostly bullish. Oil rose about half a percent, led by European Brent crude. Copper is also up about half a percent, while precious metals are mixed. Agricultural products are mostly higher.
In company-specific news, Yum Brands is down 3 percent after hot weather in China caused July sales to fall more than expected. Chinese Internet stock Sina rose 5 percent after beating on the top and bottom lines and issuing strong guidance. NQ Mobile, with headquarters in Dallas and Beijing, rose 8 percent on a strong quarterly report.
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