EmailOptimism prevails Friday supported by U.S. corporate earnings and blind faith the Europeans can remedy their debt crisis.
U.S. equity futures were pointing to a higher open ahead of the market-moving retail sales report. The momentum got another push on the half hour after the retail numbers came in stronger than expected.
Core sales ex-autos rose 0.6% -- well ahead of the Briefing.com consensus estimate of 0.3%. This was the best month since March. The gains were broad-based with clothing and department store purchases up more than 1% after declining in August. The question now will be can it last.
Also hitting the wires later this morning is the October University of Michigan Consumer Sentiment reading at 9:55 a.m. ET which is forecasted to increase slightly to 60.0.
Market participants are also casting their focus to Paris as the 2-day meeting of the G20 finance ministers begins. In an ironic twist of fate, there is talk of a BRIC-led support package for Europe as the IMF tries to bolster its rescue fund.
The European bourses and the euro are shaking off another S&P downgrade of Spain's credit rating to AA- (inline with Fitch) as well as the fact Fitch cut ratings on several major banks and placed more than 12 on credit watch negative.
The "risk on" trade continues to hold, pushing the commodity complex broadly higher. Oil has been a big gainer with WTI and Brent trading at $85.96 and $110.88 per barrel, respectively. Oil is up over 8% for the month. Copper prices are rebounding off lows currently trading at $3.41/lb. Gold is registering a near 3% gain to $1,681 per ounce in electronic trading.
On the corporate front, while Apple's (AAPL) fans await the sale of the iPhone 4 today, Google (GOOG) takes the main stage. After its forecast-beating earnings, in both sales and profits after Thursday's close, the stock is gaining over 7% premarket.
Inflation came in above 6% for the sixth straight month in China. Consumer prices for September rose 6.1%. Producer prices increased 6.5% -- well below the August reading of 7.3% but still likely too hot for policy makers.
The report did little to stem selling in the Chinese bourses which are registering year-to-date declines of around 20% -- the worst in the region. Chinese policy makers are unlikely to alter their monetary policies until food inflation eases. Food prices rose a whopping 13.4% year/year in September.
--Kimberly DuBord, Briefing.com
Kimberly DuBord is the Director of Research for Briefing Research, Briefing.com's new strategic investment research service. To request a free trial please email researchsales@briefing.com.
