EmailS&P futures suggest a flat open. That's not bad considering the absence of good news out of Europe. It's not good considering there is no bounce from Friday's severe selloff.
The financial headlines this weekend were all about a potential impending crisis in Europe. George Soros stating that governments have about three months until the euro blows up was a prime example. Anxiety is up.
There was no hard news from politicians, although there are indications that Germany may be softening its stance on European-wide solutions.
European stock exchanges are generally higher with Spain leading the way, although the German exchange is lower (see sentence above for explanation).
The only economic release due today is the April Factory Orders report due at 10:00 ET. It includes the already reported durables orders data -- and the nondurables data isn't all that important or volatile. There is no market-moving corporate news.
The US stock market is going to remain beholden to headlines out of Europe for a while. US stocks have excellent relative value, considering the 8.5% year-ahead earnings yield and 2.2% dividend yield on the S&P 500 in aggregate. That is good compared to the sub-1.5% yield on the 10-year Treasury note. Until there is some stability to the European credit crisis, however, the potential reward associated with that value will be held in check by the perceived risks from Europe.
Founder and Chairman, Briefing.com
