Russell to open flat
Small-cap stocks are expected to open near steady levels after a fairly uneventful overnight session. Heading into the opening, the Russell 2000 (NYSE:IWM) was basically unchanged, as were large-cap index products, which would translate to a Russell opening near 741.
Overseas stock markets were mixed, with Europe hovering near steady levels. Shares in Japan were up 0.35%, Hong Kong was up 0.48% and China down 0.56%.
Crude oil remains front and center on trader radar screens to start the week after setting record highs last week, and rallying again overnight.
The economic calendar is fairly tame this week, but the market will get to respond to the Leading Indicators data this morning at 10:00 a.m. ET. This report is a compilation of April numbers, so it is somewhat “dated” and typically has a limited impact on short-term trading decisions.
Headline large-caps in the news this morning include Amazon.com (Nasdaq:AMZN) and Texas Instruments (NYSE:TXN), with the former up nearly 4% overnight, and the latter gaining some 2%, both lifted by an upgrade from Goldman Sachs. Also, Yahoo! Inc. (Nasdaq:YHOO) was up overnight on talk that Microsoft would resume negotiations to buy at least part of the company. On the downside, Lowe’s Companies (NYSE:LOW) was off about 3% on soft earnings.
The Russell 2000 left a bearish outside reversal Friday, making fresh move highs in a range outside the previous session, but then closing lower. This is a topping pattern that bears are watching early during today’s action. Resistance comes in today just above the market at 744, then at 750. Meanwhile, support is at 735, 731 and 726.
