Stock futures are gaining this morning amid good economic data from China and as investors look forward to Facebook's initial public offering.
The Dow Jones Industrial Average, S&P 500 and Nasdaq are each indicated higher by almost 1 percent, following gains of 1-2 percent across Europe. There has also been a quiet rally in the last three weeks by National Bank of Greece and Bank of Ireland, which were most affected by the sovereign-debt crisis, potentially signaling that the worst may be over.
Asian shares were mixed, but the real news out of the region was strong manufacturing data from China. Its purchasing managers index rose to 50.5, exceeding expectations and pushing back above the key 50 level that indicates expansion rather than contraction.
That is helping risk assets that are correlated with economic growth. Oil, silver, platinum, and
most agricultural commodities are higher. Currencies such as the euro, the Australian dollar, and the Canadian dollar are up as well, while the yen is lower.
The flow of economic news will remain heavy, with the ADP employment report at 8:15 a.m. ET today, followed by the Institute for Supply Management's Index at 10 a.m. ET. The monthly non-farm payroll report is scheduled for Friday morning.
In company-specific news, the attention is focusing on Facebook, which selected Morgan Stanley to lead its IPO. The social-networking giant is expected to file with the Securities and Exchange Commission today to raise $5 billion in the offering, according to Bloomberg. A successful listing could significantly help investor confidence and winning the deal could lift MS shares.
Investors are also looking past a weak report last night by Amazon.com, which posted weaker-than-expected revenue and said an increased reliance on third-party vendors is hurting profit margins.
Other companies reported better numbers. Whirlpool's fourth-quarter was mixed, but management said adjusted EPS would be $6.50 to $7 this year, beating the $5.85 average analyst estimate. Manitowoc also reported strong revenue and said sales will exceed $4 billion in 2012 versus consensus of $3.93 billion.
More From optionMONSTER
European stocks rose for a third straight session on Monday and the euro bounced back from two-year lows, as Greek …
There are no comments yet