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Time to Hit Reset
The time has finally arrived to hit the reset button for the stock market and not a leap second too soon. The indices are all back to unchanged and hope for (much) better returns in 2009 has permeated the marketplace.
Currently, the futures market is signaling modest gains for the S&P 500 when trading begins.
That indication won't bother most investors, seeing how the S&P has managed a 4.6% gain since the close of trading on Dec. 23. Unless there is a sea-change in sentiment over the course of the next two trading sessions, it looks as if we'll be able to say there was indeed a Santa Claus rally.
It is no surprise that the corporate news flow is light this morning. This is a popular vacation day.
Some things, however, haven't changed with the calendar. It is being reported that yet another industry is lobbying its cause to be a big beneficiary of President-elect Obama's stimulus plan. This time it is the steel industry.
Mr. Obama's stimulus plan will be a major focal point for the market in January. No one knows for certain right now what it will end up looking like, but one thing is certain at this point: it will be big in terms of its cost.
Speaking of costs, oil is cheaper this morning (-$2.85 to $41.70) as a sizable portion of Wednesday's big move is being retraced. Accordingly, energy stocks are anticipated to be laggards in the early going.
The ISM Index, which is a survey of national manufacturing conditions, will be released at 10:00 ET. The market knows it will see a weak reading. The only question is, how weak?
Economists expect a depressed reading in the mid-30s region. A number below 50 implies there has been a contraction in manufacturing activity.
The market has managed to shake off most bad news in the past week or so. It shouldn't be a surprise if it does so again today since hope springs eternal with the arrival of a new year.
Feeds!