Daily Futures Commentary October 8, 2009

Thursday, October 8, 2009

U.S. equity markets are expected to open higher following a strong move overnight, triggered by an unexpected profit from Alcoa. This news made traders more optimistic about the rest of the earnings season. Investors will also be watching today’s jobless claims and same-store sales reports for further clues that the U.S. economy is on the road to recovery. Investors are hoping the same-store sales report shows that consumers are beginning to loosen up and spend.

Yesterday, U.S. stock markets managed to close higher after a tentative trading session. At times traders seemed nervous committing to the long side ahead of the start of earnings season. At the close the December E-mini S&P 500 finished better than 50% of its current 1075.75 to 1015.00 range. This is technically a bullish signal. After the close, Alcoa reported better than expected earnings. This news is setting the tone for higher markets today. Investors will be looking for improved earnings along with an increase in revenues.

December Treasury Bonds and Notes surprisingly closed better on Wednesday despite rallies in gold and equities. Technical indicators showed that the T-Bonds were poised to test …
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