By Bryan McCormick
Asian markets were positive across the board last night, especially Japan, but that strength did not carry over to eurozone and UK trading.
The move lower in Europe was prompted by lower-than-consensus output data for May. The rise was 0.9 percent versus an expected 1.2.
US futures have also been trimmed quite dramatically from their overnight peak. How that translates into trading today isn't clear, but at the moment the S&P 500 would open relatively flat. The big gainer remains the Nasdaq 100 after Intel's (INTC) strong earnings results announced in the after-market last night.
Retail Sales will be a key report this morning. With only one S&P 500 name reporting today, Marriott International (MAR), there could be a pause today ahead of results from JP Morgan (JPM) and Google (GOOG) tomorrow.
Earnings season is just getting underway with a much larger number of companies reporting next week. The challenge now is that markets have turned from being longer-term oversold to short-term overbought. That could cap advances for the time being.
Tomorrow's economic calendar is also heavy, which could leave room for additional trading catalysts before the flood of earnings news gets underway.
Disclosure: No positions