Thursday 28 August 2014

Markets | 27/08/2014 | U.S. Stocks: S&P To Stick Above 2,000




Despite another record close being posted on Wall Street on Tuesday, enthusiasm for stocks appears to be ebbing a little in Asian markets and although most of the major regional indices managed to grind out some modest gains, the Hang Seng looks set to finish the day well underwater. The support we are seeing at the moment appears to be stemming from upbeat US economic data and if consumers are spending then Asian manufacturers and service providers should benefit. Asian economic data has however been rather thin on the ground of late although with a new month starting next week, more high profile readings here will serve up some meaningful direction in due course.

Looking ahead, US markets remain undaunted by the dizzying highs they're currently standing at and futures are suggesting there's more gains to be seen at the open. Last night saw the S&P close above 2,000 for the first time in history and there's little on the economic calendar that looks as if it has the potential derail the bullish sentiment before the opening bell. We do have some mortgage approval stats but against numbers like that massive uptick in durable goods orders yesterday, it's going to take some significant disappointment to rock sentiment. Ahead of the open we're calling the DOW up 20 at 17127 and the S&P up 2 at 2002.

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