Futures rebound from Friday selloff

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Stocks are rebounding from a selloff late last week, supported by strong economic data overseas.

S&P 500 futures are up more than 0.4 percent. European indexes are rising by a similar amount, and have been gaining all morning. Asian markets declined in the overnight session, led by a 3.7 percent drop in Tokyo, after U.S. markets tumbled more than 1 percent on Friday.

China's official-government purchasing managers index stood at 50.8 in May, beating the 50.1 consensus forecast. Europe followed with more positive data today as German, French, and Spanish PMIs all came in better than expected. An even-more important report follows at 10 a.m. ET when the U.S. Institute of Supply Management reports its monthly manufacturing index.

The macroeconomic calendar remains active this week, with private-sector payrolls Wednesday, European monetary policy Thursday, and non-farm payrolls Friday. Retailers also announce monthly sales on Thursday morning.

Friday's pullback in the S&P 500 followed a period of consolidation during which the index had drifted in a range. The big question now facing investors is whether the drop was the start of a broader correction or yet another buying opportunity in the midst of a seven-month rally.

Recent price action paints a mixed picture. Small-cap stocks and transports, which led the rally earlier this year, both outperformed the broader indexes on Friday. Conservative sectors including health care and consumer staples also lagged, according to our researchLAB market scanner.

Commodities are solidly bullish today as oil, copper and silver rally more than 1 percent. Gold and most agricultural foodstuffs are gaining as well. Currencies reflect a similarly optimistic tone as the Australian and Canadian dollars appreciate against the greenback. The euro is modestly higher and the Japanese yen is down across the board.

Few stocks are moving on company-specific news, although automakers and associated names such as tires and auto-parts could be active today before the release of May car and truck sales this afternoon. Ford and Goodyear Tire & Rubber have also seen bullish options activity and researchLAB has shown strength the industry over the last month.

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