Wall Street going into September with optimism . . . . . . . . . . . . Markets are set for a positive open on Tuesday, as trading is resumed after a long holiday weekend in the U.S. with investors hoping to maintain the summer’s solid performance. U.S. stock futures edged higher, European stock markets are firmly higher in early trade, and Asian stocks ended higher. -Futures on the Dow Jones Industrial Average gained 0.094% to 17101 -Futures on the S&P 500 Index gained 0.090% to 2003.20 -Futures on the NASDAQ 100 gained 0.153% to 4088.25 . As of 08:00 a.m. ET Wall Street closed higher on Friday, ending a solid August for stock markets. The Dow Jones jumped 3.2%, the S&P 500 climbed 3.8% and the NASDAQ surged by nearly 5%. As for September, some investors are marching on in fear, as it is often a bad month for equities. The S&P 500 has recorded an average fall of 0.5% in September since 1950. However, the case may not be the same this time, taking in mind that the five past Septembers have enjoyed solid gains every year expect one in 2011 – the month following the cut of the U.S. credit rating by Standard & Poor’s and while the Eurozone debt crisis was near its worst. The U.S. economy rebounded at a better-than-expected rate in the second quarter, after a weather-plagued first quarter that sent the economy into contraction. The U.S. labor market is really showing signs of strong momentum. Corporate earnings growth has been solid and revenues have also been growing decently, which indicates companies are benefiting from actual demand and not only cost-cutting. Meanwhile, traders are expecting a good session for the day, with a bunch of reasons that could alter the trading tone. The U.S. Census Bureau will release data on construction spending for July at 10:00 a.m. ET, while the Institute for Supply Management will release its August data on the manufacturing sector activity. As for individual shares, Tuesday`s major mover was Yahoo, with shares going up nearly 2% in premarket as investors look forward to the Alibaba IPO, expected to launch next week. Note that Yahoo owns a 24% stake in the Chineese company. The U.S. dollar continues to grow stronger against other major currencies. The Dollar Index is up 0.22% for the day at 82.97, the highest since July 18. #egyptyard
Posted on: Tue, 02 Sep 2014 12:48:21 +0000