S&P 500 bouncing off of technical support?
The main US equity benchmarks are now registering strong gains (Dow Jones Industrial: 267, Nasdaq Comp.: 74, S&P 500: 32) following a weekend promise by German Chancellor Angela Merkel and French President Sarkozy that they will attempt to provide a lasting solution to the Eurozone crisis by the beginning of the next month. The Chancellor´s spokesman, however, has warned not to expect any miracles.
Interestingly perhaps, some are pointing out that the S&P may have found some ‘technical support’ at its 200 week moving average.
Acting as a ‘backdrop’ there is keen interest in the beginning of the quarterly company results season, with Alcoa´s, tomorrow. Some observers will apparently also be closely watching the results coming out from players like JP Morgan (on Thursday) or Goldman Sachs (next week).
Also of interest, some economists have upgraded their forecasts for US GDP growth in the third quarter, to 2.5%, from 2.0% previously. Quite important as well, ‘market chatter’ as regards possible trade frictions with China over new legislation now making its way through Capitol Hill.
On the company front it´s Apple that will lead the way, after informing that it has already received 1 million ‘pre-orders’ for its new iPhone 4S. Shares of Netflix are gaining 10% following the announcement that it will not go through with its plans to ‘spin-off’ its DVD by mail service.
Citi has upgraded Micron Technology to ‘buy’ from ‘hold’.
Superion will acquire natural gas outfit Complete Production Service for $2.6bn. Starwood Hotels is expected to benefit from a positive article on the stock in the latest edition of Barron´s.
Sprint shares are registering large falls.