EmailThere is more of the same negative news that has plagued the stock market in recent weeks.
Greece concerns have been heightened as the party that opposes bailouts has risen in the polls. Spanish bond rates are up. European stock exchanges are down a bit over 1%. JPMorgan Chase's trading loss is reportedly at least another $1 billion on top of the originally reported $2 billion.
There is some good news. Wal-Mart reported earnings ahead of expectations and is up sharply. That will help the Dow.
New claims for unemployment were flat at 370,000 for the week ended May 12. That is marginally higher than expected, but still augurs well for the May employment report. The claims data are for the week in which the May employment survey was taken, and the 370,000 level is lower than the 389,000 level in the comparable April week. April payrolls were up 115,0000.
So far, S&P futures suggest that the negatives slightly outweigh the positives, and a slightly lower open is expected.
The open hasn't been a good indicator lately. The past two days the market opened higher, only to end lower. The action has been very poor and in sharp contrast to the steady buying that lifted the market intra-day in early May even as the overall downtrend commenced.
Underlying sentiment is extremely cautious. There hasn't yet been a blowout to the downside and there is a risk one will occur. The market can already be considered oversold, but taking a stab at a bounce is only for those with a high risk tolerance. Even those looking to buy into cheap stocks probably don't risk much by being patient.
Despite the pervasive anxiety, it is also worth remembering that the S&P 500 index is up 5.4% year-to-date.
Founder and Chairman, Briefing.com
