Improving Global Outlook And Positive Housing Data Could Send Stocks Higher

U.S. futures reversed earlier losses and are now pointing toward a higher open as risk appetite picked up when the U.K. and Japanese economies demonstrated some green shoots of their own.

[B]What To Watch For In The US Session

• Global Outlook Improving
• Housing Data Ahead

[/B][U][B]Improving Global Outlook And Positive Housing Data Could Send Stocks Higher[/B][/U]

U.S. futures reversed earlier losses and are now pointing toward a higher open as risk appetite picked up when the U.K. and Japanese economies demonstrated some green shoots of their own. The NAHB housing market index is the only scheduled fundamental release and the second tier indicator may not have a major impact on price action. However, the expected improvement to 16 from 14 combined with tomorrow’s anticipated improvement in housing starts will provide further evidence that the sector is bottoming. The TED spread narrowing to its smallest level since before the credit crisis began is a clear sign that credit markets are thawing. Therefore, we could see the outlook for domestic growth improve and stocks trade higher.
[B]
Dow Jones 8268.64[/B]
The DJIA could have a strong day if the outlook for the global economy improves on the positive fundamental data from the U.K. and Japan. Greta Britain saw home prices rise the most in a year as thawing credit markets are fueling demand. Meanwhile, Japanese sentiment continues to improve as consumer s reinforced the optimism showed by businesses in the Eco watchers survey.
[B]
NASDAQ 1680.14[/B]
The Nasdaq futures are positive and the brighter outlook may see consumer related names start to trade higher as analyst start to price in improved demand from abroad.

[B]S&P 500 882.88[/B]
The S&P 500 could see builders advance today if the housing data is positive and with the expected improvement in new construction tomorrow.