Dartline™ First Look – morning directional planner
February 3, 2010, 7:30 am EST … The Standard & Poor’s 500 index futures down 0.20 to 1097.00, as investors want to believe all is well in Stockville. Stocks have rallied the past two days on upbeat reports that show the economy is continuing to rebound. Overseas, Japan’s Nikkei stock average ROSE 0.3 percent. Britain’s FTSE 100 rose 0.3 percent, Germany’s DAX index gained 0.1 percent, and France’s CAC-40 rose 0.3 percent. … Indeed, the market retreated last month on concerns the economic recovery wasn’t sustainable and that a strong 10-month stocks rally was running out of steam, and for more signs that the economy’s blistering fourth-quarter growth carried into the new year. The ADP January employment report, due at 8:15 a.m. EST, is expected to show employers cut 40,000 jobs last month, compared with a loss of 84,000 jobs a month earlier, according to economists polled by Dartline. High unemployment remains one of the biggest obstacles to a strong, sustained recovery. The government’s report is expected to show employers added 5,000 jobs last month, but that the unemployment rate rose to 10.1 percent from 10 percent in December. … A report from the Institute of Supply Management, due at 10 a.m. EST, is expected to show the U.S. service sector grew last month. The trade group’s service sector index likely rose to 51 last month from 49.8 in December. A reading above 50 indicates growth. Any signs of growth would provide a welcome reassurance the economy and jobs market are improving. The ISM’s better-than-expected report released Monday on the manufacturing sector helped the market rally after retreating much of the final two weeks of January. … Meanwhile, bond prices fell Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.67 percent from 3.65 percent late Tuesday. The dollar fell against other major currencies, while gold prices rose modestly. … … For the S&P 500 index use 1115.49 as near term resistance and support at 1080.50. Trade both sides of the market with neutral bias. Not the time to be too aggressive. Wait for the market come to you.