EmailThe S&P 500 index ended last Friday at 1295.22. It has risen every day this week to 1320.68 yesterday, a gain of 2.0% for the week. Futures suggest a flat to perhaps slightly up open today.
It is hard to take much solace from the bounce this week. The index is still down 6.1% for the month and anxiety over the ongoing European crisis remains extremely high. The market simply seems to have found a bottom where value has brought out some demand, at least temporarily. The outlook still depends heavily on the uncertain outcome of headlines from Europe.
There are heightened concerns about global economic growth. A number of manufacturing surveys in Asia and Europe suggest weak trends, but these are just surveys and the importance is being exaggerated in this period of anxiety.
Helping to support the market is a statement from Italian Prime Minister Monti that "the most probable outcome is the one which is most positive for Greece and for all of us." Well, OK, but what else could he say? There isn't anything solid to report on the European situation.
European stock exchanges are about unchanged.
The only economic release today is a revision to the May University of Michigan sentiment index due at 9:55 ET. The preliminary reading was 77.8 from 76.4 in April. Expectations are that it will be revised slightly lower but that wouldn't have any significant economic implications.
The euro is little changed and the rate is still below 1.26. Gold is flat at $1558 an ounce, and oil is down $0.03 at $90.63 a barrel.
There is a possibility that the market could sell off ahead of the three-day weekend in the US. The headlines out of Europe as to whether there will be a Euro Bond or whether Greece will exit the eurozone present volatility risks in both directions. It is also not uncommon for companies, and governments, to make a large announcement at times when the markets are closed in order to reduce disruptions.
Founder and Chairman, Briefing.com
