EmailS&P futures suggest another quiet day with a modest up open of about three points.
China made news as a written statement from the premier included a mention that there is room for further monetary easing. Equity investors are counting on global central bank stimulus. There are also expectations (hopes) that Fed Chairman Bernanke will provide indications of another round of quantitative easing in a speech scheduled for August 31 at the Kansas City Fed's annual conference in Jackson, Wyoming.
Hard news today includes the report that new claims for unemployment for the week ended August 11 rose to 366,000 from 364,000 the prior week. That reflects a steady trend and is in line with expectations.
July housing starts dipped to an annual rate of 746,000 from 754,000 in June but housing permits jumped 7.5% to an annual rate of 812,000. Starts are well below the 2.0 mln rates of 2003-2006, but even with the July dip there is an undeniable modest uptrend (which permits suggest will continue) as starts were consistently near a 600,000 annual rate from mid-2008 through late-2011. Housing is now actually one of the strongest growth components of GDP.
The Philadelphia Fed manufacturing index is due at 10:00 ET.
Wal-Mart shares are lower after what has become a classic for this earnings season - profits a penny ahead of expectations but revenue a bit below. Cisco is higher pre-market after a so-so earnings report and a 75% dividend hike that raises its yield to 3%. Sears stock is higher after earnings.
There is a partial release of a lockup on Facebook stock today such that insiders can now sell 271 million more shares. The share price faces an uphill climb against an even larger 1.44 billion shares that insiders can sell by the end of the year. The IPO sold just 421 million shares.
European stocks are flat but the Spanish market is up solidly as the 10-year yield there has dropped to 6.58%.
This market drift of the past two weeks could easily continue but it is also fragile. Volume is light and conviction low.
Founder and Chairman, Briefing.com
