It's shaping up to be a firecracker start for the equity market on this first -- and abbreviated -- trading day of July. The S&P futures are up eight points and are trading 0.3% above fair value while the Nasdaq 100 futures are up 20 points and are trading 0.4% above fair value.
It's challenging to put one's finger on exactly why the stock market has a positive leaning. Our first impression of matters is that the news flow has a generally supportive hue to it.
- China's Caixin manufacturing PMI reading of 50.4 for June was stronger than expected
- European markets are solidly higher today, aided by an encouraging manufacturing PMI reading of 57.4 for the eurozone that is the highest reading in more than six years
- The state of Illinois passed a $5 billion tax package that should help it avoid a junk bond rating
- Oil prices ($46.26, +$0.22, +0.5%) keep pressing higher in a recovery trade
- Bankrate (RATE) is being acquired by Red Ventures for $14.00 per share in cash, which values the company at an enterprise value of $1.4 billion
- The New York Post is reporting that Verizon (VZ) could possibly be interested in acquiring Disney (DIS); and
- Tesla (TSLA) announced it's a go for launch on its Model 3 production
There's a feel to things this morning that is making those around to trade it feel good about their quick-strike prospects in a thinly-traded market. Of course, given the manner in which the market closed on Friday, one can't take anything for granted today.
Friday's close had the semblance of being a fire drill as the major indices all stopped, dropped, and rolled into the closing bell. The Nasdaq Composite, for instance, dropped 22 points over the last ten minutes or so of trading and finished the day with a slight loss.
No one is yelling fire this morning, however, in today's less-than-crowded theater.
We'll be interested to see if anyone is yelling at 10:00 a.m. ET when the ISM Manufacturing Index (Briefing.com consensus 55.0; prior 54.9) and Construction Spending (Briefing.com consensus +0.3%; prior -1.4%) reports are released.
Those are the featured reports on today's economic calendar along with the release of auto sales data for June.
Waiting for everyone at the end of the week is the June employment report, which should factor prominently in the market's thinking about Fed policy.
No one wants to rush the week, though, mostly because a lot of people are enjoying an extended weekend due to the Fourth of July holiday. In observance of the holiday, the stock market will close today at 1:00 p.m. ET and it will be closed all day Tuesday.
Enjoy the time off if you have it, but even if you don't, simply enjoy the life, liberty, and pursuit of happiness we are afforded in this great country.