Futures are pointing higher this morning on earnings optimism, but investors cannot seem to shake the wariness over Europe. Jobless claims are also on tap this morning. Dow futures are currently up 34 points. Nasdaq and S&P 500 futures are also positive, up 14 and 4 points respectively.
The just released jobless numbers are likely to disappoint investors. Claims came in at 386k, a 2k drop thanks to the BLS revising the previous week upward. This time it was from 380k to 388k. Expectations were for a print of 374k. So the narrative that will emerge is that like the housing market, the labor market is beyond anemic and will likely lead to some sort of new stimulus.
The percentage of overall earnings beats is helping investors shrug off news coming out of Europe, plus the ambiguous data emerging domestically and from China. Granted the earnings expectations bar was set so low, the number of beats at this point was inevitable. But investors are taking positives where they can get them. [Read more...]