09:40 ET Dow +80, Nasdaq +36, S&P +10.71: [BRIEFING.COM] A good start for the cash market with plenty of green figures crossing the tape... Technology, financial, and retail shares are pacing the advance... Separately, European bourses, up 1.5-2.0% in general, have extended their gains in the wake of the strong opening for the U.S. market... Treasury market is one of the few laggards of note as the ECB's decision to cut rates, and the equity strength, have prompted a redistribution of capital... NYSE Adv/Dec 1406/634... Nasdaq Adv/Dec 1793/674.
09:15 ET: [BRIEFING.COM] Cash market is expected to move noticeably higher in the early-going, propelled by a number of favorable catalysts... Specifically, enthusiasm in futures trade stems from the surprise decision by the ECB to cut rates by 25bp, Morgan Stanley's upgrade of a number of chip equipment stocks to STRONG BUY from Outperform, a report that initial claims fell 41K to 384K for the week of May 5, and a batch of reassuring earnings, and same-store sales, news from several retailers, including Wal-Mart (WMT 51.59), American Eagle (AEOS 39.59), Ann Taylor (ANN 31.25), Wet Seal (WTSLA 29.15), J.C. Penney (JCP 20.54), Gap (GPS 28.80) and Children's Place (PLCE 24.40)... S&P futures, at 1273, are 14 points above fair value... Nasdaq 100 futures, at 1918, remain lock-limit up.
08:35 ET: [BRIEFING.COM] Table is set for a decidedly positive open as the S&P futures, at 1271, are 12 points above fair value while the Nasdaq 100 futures, at 1918, are 33 points above fair value and lock-limit up... Positive tone attributed, in part, to surpise decision by ECB to lower rates by 25 basis points... Similarly, the BOE also lowered rates by 25 basis points... Both moves bolstering the view that central banks are finally doing their part to stimulate growth in an effort to avoid the possibility of a global economic recession... Separately, look for chip equiment stocks to lead the opening tech charge as Morgan Stanley upgraded AMAT, KLAC, ASML, LRCX, NVLS, and TER to STRONG BUY from Outperform, saying "the train has left the station," and that it sees upside of 40% or more over the next 12-18 months... Hasn't hurt sentiment either this morning that initial jobless claims fell 41K to 384K in the week of May 5.
07:50 ET: [BRIEFING.COM] S&P futures +9.8, or 7.8 pts above fair value; Nasdaq 100 futures +34, or 25 pts above fair value. Positive tone intact, but no movement in the futures over the past half hour.
07:30 ET: [BRIEFING.COM] This morning's fair value figures -- S&P 500 fair value: 1259; closed 2 pts below fair value. Nasdaq 100 fair value: 1885; closed 9 pts below fair value. Current indications: S&P 500 futures are +9, or 7 pts above fair value. Nasdaq 100 is +35, or 26 pts above fair value. Tone has been decidedly positive throughout the morning; talk of a morning upgrade in the chip equipment sector contributing to strength in the Nasdaq futures.
06:17 ET: [BRIEFING.COM] S&P futures trading at 1264.70, 5.7 points over fair value, Nasdaq 100 futures trading at 1896, 11.0 points over fair value. The 30-year bond is down a tick at 5.669%. The dollar is little changed against the yen, but weaker against the euro.
06:16 ET: FTSE +0.17%, DAX +1.04%: [BRIEFING.COM] European stocks mostly higher with Germany outperforming. Gains largely fueled by an earnings-driven rally in old economy stocks. BMW, Germany’s third largest automaker, reported that first quarter net income rose to 409 mln euros from 87 mln in the year earlier period on sales of 9.4 bln. Air France and Carlsberg also provide more earnings optimism. Oil stocks have resumed their run-up today, though British Telecom has been somewhat of a drag following plans to raise 5.9 bln pounds by selling new shares.
06:15 ET Nikkei -0.48%, Hang Seng +0.14%: [BRIEFING.COM] Asian stocks mixed, but Japan down again after NTT DoCoMo reported that profit growth will take a hit this year on the back of increased competition. DoCoMo’s ratings cut by Nomura, while other high-tech and bank issues suffered from a pronounced lack of investor interest, particularly on the part of foreign accounts. Taiwan’s TWSE Index closed at its lowest level in four months on the back of semiconductor weakness. Korea’s Kospi pushed a tad higher with retail and foreign buying in the futures outweighing weakness in steel and banking stocks. Daewoo surge also a plus following reports of a GM-bid as early as next week. |
