SubscribeDaily Futures Commentary July 29, 2009
Wednesday, July 29, 2009
Equity markets are expected to open flat to lower based on overnight action. Although there was not a hard sell-off, stock equity futures were not able to trade above yesterday’s highs following a mostly sideways trading day.
Monday’s bullish New Home Sales Report was enough to drive equity markets higher but traders were reluctant to trigger a strong breakout to the upside. The sell-off on bullish news is a sign that the equity rally may be running out of steam as investors approach the markets more cautiously at current levels.
Weakness in Europe and Asia appears to be setting off the selling pressure in the U.S. markets. While better than expected U.S. corporate earnings have been the catalyst of the recent two week surge in equity prices, Europe is just beginning its earning season. Traders will be watching overseas corporate earnings for clues as to whether the European companies are weathering the current global recession as well as their U.S. counterparts.
U.S. investors will be waiting for confirming data from Europe over the near-term as there is still a lot of money on the sidelines. U.S. money …
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