- The major U.S. index futures are pointing to higher opening on Monday, with sentiment reflecting the momentum that has been building up in recent sessions. Earnings news continues to be encouraging and there has been a spate of deal announcements that reinforce corporate America’s faith in corporate profit growth. Additionally, the killing of Osama bin Laden, the mastermind behind the September 11 attacks, has given a psychological boost to the global markets. The results of the national manufacturing survey to be released shortly after the markets open may also influence market sentiment.
U.S. stocks extended their gains in the week ended April 29th, as earnings news continued to be supportive and the Federal Open Market Committee decision announced during the week did not include any negative surprises. The dollar continued to trade lower during the week, reflecting some data points and the Fed decision to hold interest rates at extremely accommodative levels for an extended period.
Last Monday, the major averages closed on a mixed note, with the Dow Industrials and S&P 500 Index closing lower, while the Nasdaq Composite scraped out a gain. Mostly positive earnings and a better than expected consumer confidence reading catalyzed a strong upward move on Wall Street on Tuesday.
After stocks showed some fatigue early in the session on Wednesday, the FOMC decision and the Fed’s first ever press briefing hosted by Chairman Ben Bernanke offered solace to traders. The major averages eventually the day firmly in positive territory. Stocks overlooked some soft economic data on Thursday and instead focused on the salubrious reporting season. The averages ended higher yet again on Thursday.
Another batch of positive earnings parade kept the momentum going on Friday, with the major averages signing off the week on a buoyant note and settling at fresh multi-year closing highs.
For the week, the Dow Industrials ended up 2.40 percent, the S&P 500 Index gained 2 percent and the Nasdaq Composite added 1.86 percent.
Among the sector indexes, the Dow Jones Transportation Average and the NYSE Arca Airline Index rose over 4 percent for the week, while the NYSE Arca Biotechnology Index gained 3.82 percent. The Dow Jones Utility Average, the KBW Bank Index and the NYSE Arca Biotechnology Index advanced over 2 percent each. However, the NYSE Arca Gold Bugs Index slid 2.18 percent and the Philadelphia Oil Service Index lost 1.52 percent.
Currency, Commodity Markets
Crude oil futures are currently receding $1.59 to $112.34 after ending the week ended April 29th up $1.64 or 1.46 percent at a 2-1/2 year high of $113.93.
Similar Posts:
- Markets May Sustain Momentum On Data, Corporate News
- Mixed News Flow May Create Some Uncertainty
- European Debt Worries Likely To Weigh On U.S. Stocks
- Positive Data May Allay Growth Fears
- Earnings Optimism May Be Tempered By Profit Taking
