EmailS&P futures suggest a slightly lower open. There is little news.
The S&P 500 index showed impressive strength yesterday and even though it lost almost half of the gains in a steady afternoon decline, the seven point gain on the day maintained the recent underlying bullish tone.
There are no earnings releases of note this morning (Disney had a mixed report after the close yesterday) and the only economic release is an inconsequential report that second quarter productivity was up at a 1.6% annual rate.
There is almost no news out of Europe, although stock exchanges are slightly lower and the Spanish 10-year yield is approaching the much-feared 7% level as it is up to 6.89%. Even the news out of England is limited, as most of the track and field events were qualifying rounds and not yet medal events.
The question thus becomes which direction the momentum (and black-box algorithm trading) will take the market through the day. There is a risk that the momentum trade is fading, which could bring some stark realities back in focus.
Founder and Chairman, Briefing.com
