Futures see more upside after rally
David Russell | [email protected]
The S&P 500 is indicated to open higher by more than half a percent, following similar gains in Europe. Asian markets also rallied overnight after the S&P 500 rallied back from a decline of almost 1 percent yesterday to close positive.
Sentiment is improving as investors anticipate strong monthly sales data from retailers and hope for a resolution to the budget fight in Washington. A survey of economic confidence in the Euro zone also came in better than expected, breaking eight months of declines.
At 8:30 a.m. ET, the U.S. government will release jobless claims and revised third-quarter gross domestic product figures. Both are expected to show improvement over previous reports. (See related story)
Commodities also reflect a willingness to take risk. Oil and copper, which are highly sensitive to the economic mood, are higher by more than 1 percent. Gold and silver are up more than half a percent, while most agricultural foodstuffs are higher.
Foreign-exchange trading is modestly bullish, with the euro edging higher and the Japanese yen losing value.
In company-specific news, retailer Aeropostale is down by almost 9 percent in early trading after issuing weak guidance for the fourth quarter. Guess rose 7 percent on news of a special dividend, and Research In Motion is up by more than 10 percent as investors continue to bet on a rebound in the stock, which hit a nine-year low in September.