U.S. futures were pointing at a higher open as optimism rose overnight on the back of better than expected Japanese GDP figures and Bank of America’s ability to raise $13.47 billion through a sale of its shares.
[B]What To Watch For In The US Session
• Oil Rises Above $60 bbl
• Bank of America Raises $13.47 Billion
• MBA Mortgage Applications Rise
[/B][U][B]Bank of America’s Ability To Raise Capital Could Help Lift Markets[/B][/U]
U.S. futures were pointing at a higher open as optimism rose overnight on the back of better than expected Japanese GDP figures and Bank of America’s ability to raise $13.47 billion through a sale of its shares. However, we may see gains limited as markets await further evidence that the economy is starting to generate growth and not merely stabilizing after the biggest recession since the Great Depression. MBA mortgage applications up 2.3% will help traders forget the dismal housing starts numbers but may not be enough to get them bullish again on the housing sector. U.S. Treasury Secretary Timothy Geithner will speak today at the Senate TARP hearing and his comments could spark volatility as traders try look to see the government’s intentions regarding the repayment of funds by banks.
[B]Dow Jones 8431.00[/B]
The DJIA could see energy names get a lift from rising oil prices. Additionally, the Japanese GDP report has raised optimism that its economy could rebound sooner than expected adding to the improving outlook for the global economy.
The Nasdaq index is also looking at a strong start but we may see upward potential limited as technical resistance is ahead.
[B]S&P 500 903.40[/B]
The S&P 500 may see financial trade higher on Bank of America’s ability to raise capital.