The Early Look: Futures Pointing Higher on Europe News

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The Early Look

Here’s a brief look at the pre-market action for July 10, 2012 @ 07:31 AM

Good morning. Will keep this brief this morning as there are just a couple of key items.

Asian markets were generally down, with the major exception of India which dragged the region's average up for a small loss of -0.15%.

China's imports almost half of what economists had forecast, further indicating slower growth.

Europe however is trading up +1.2%, off better than expected UK industrial data but more importantly announcements over the EU finance ministers' meeting that aid for Spanish banks will be expedited. Also, some encouraging signals from Germany's top court that bailout efforts will not be overturned, although a final vote still to come.

In macro news, the ECRI is staying with its U.S. recession forecast and indeed says we are already in it. The OECD says developed nations' unemployment will remain elevated through 2013.

U.S. futures popped after being lower all night on the European region's gains and now trading up 3-6 points on the S&P and about 40-60 on the Dow.

No major U.S. data today and no major name earnings reports, although RIMM has shareholder meeting today. AMD issued lowered guidance last night. Alcoa beat but it was still a weak report.

In a separate interesting note, many technicians looking at a rare pattern of convergence on major indices moving averages, which usually forecasts a breakout or breakdown, unfortunately they do not know which way.

Good Trading!
David W. (aka The Underground Trader)

Pre-Game Indicators

Here are the Pre-Market indicators we review each morning before the opening bell...

• Major Foreign Markets:
  • Australia: -0.53%
    
  • Shanghai: -0.30%
    
  • Hong Kong: -0.16%
    
  • Japan: -0.44%
    
  • France: +1.04%
    
  • Germany: +1.23%
    
  • Italy: +1.57%
    
  • Spain: +0.96%
    
  • London: +0.82%
  
  
• Crude Oil Futures: -$0.71 to $85.28
  
• Gold: +$4.90 to $1594.00
  
• Dollar: higher against the yen, euro and pound
  
• 10-Year Bond Yield: Currently trading at 1.521%
  
• Stock Futures Ahead of Open in U.S. (relative to fair value):
  • S&P 500: +2.94
    
  • Dow Jones Industrial Average: +38
    
  • NASDAQ Composite: +6.09

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