While the Federal Reserve might have provided "the key" to the equity market rally that has added 4% to the S&P 500 gauge in a month, "it still very much remains for the eurozone to turn it in the lock," noted Andrew Wilkinson, chief economic strategist at Miller Tabak. "Equity investors probably won't stop until they see 1500 on the S&P 500 index." Futures for the Dow Jones Industrial Average were rising 57 points, or 52.07 points above fair value, at 13,572. The blue-chip index has risen more than 11% so far in 2012. Futures for the S&P 500 were up 5.7 points, or 5.89 points above fair value, at 1459. Futures for the Nasdaq were rising 13 points, or 11.20 points above fair value, at 2866. European Union officials are working on paving the way for a new rescue program for Spain and unlimited bond purchases by the European Central Bank, which would help ease borrowing costs and Spain's debt burden by helping the country put together an economic reform package expected to be revealed next week, The Financial Times reported. The newspaper said the program will concentrate on structural reforms for the economy instead of more taxes and spending cuts and that Spain and the European Commission are focusing on measures that international lenders would demand. "With the decision-making process of the Euro area distilled down to a very small number of people, such stories are just speculative," noted Paul Donovan, global economist at UBS. "However, Spanish conditions relating to structural reform not fiscal targets would be helpful, as Spain stands a good chance of missing its fiscal targets." The major U.S. stock averages booked a mixed finish Thursday after a raft of data from both the United States and abroad put a damper on investor sentiment. No major releases were scheduled for Friday in the U.S. "One of the big negative issues for the market is a possible realization that central banks globally have been overly juicing the markets by pouring in tremendous amounts of liquidity," added Uri Landesman, president of Platinum Partners. "This will cause investors to believe that all assets are simply bubbles waiting to be burst. In some ways, this scenario is even scarier than 2008." Matthew Lloyd, chief investment strategist at Advisors Asset Management, said he believes that "don't fight the Fed is as pronounced a philosophy as it has been in recent memory." "The important aspect is to invest in the impacts of the Central Banks increasing accommodation policies as opposed to the same investments they are buying," he advised. "We remain bullish on domestic risk assets as well as increasing our outlook on China and Europe equities." "Central banks across the globe are doubling down on backstopping credit markets and their respective economies ... The Fed's
NEW YORK (TheStreet) -- Stock futures were trading higher Friday on reports that Spain is getting ready to announce a financial rescue plan as soon as next week and as Apple (AAPL) shares spiked, up 0.38%, as the company's iPhone 5 went on sale across the globe Friday amid strong demand.
2012 Stock Predictions and Outlook
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