The bulls wrapped up last week with another win, making it 7 out-of-the-last 8 weeks they have moved the market higher. Friday’s action was a little constrained as the Dow traded in 50-point range after breaking out over 11,200 on Thursday as investors decided to take some profits ahead of the weekend and the G-20 meetings.
The G-20 did meet and agreed to avoid competitive devaluations of their currencies, but the global finance ministers failed to hammer out specific guidelines. As a result, the dollar resumed its fall this morning and futures are pointing towards a higher open. We have mentioned over the past few weeks that a weaker dollar has driven commodity prices up and made the market more attractive as well.
The dollar is trading lower this morning and has hit a fresh 15-year low against Japan’s yen. The euro is back above $1.40 while both Gold and oil prices are both up this morning. Gold is up $21 to $1,346 an ounce and continues to perform well.
Economic reports will dominate morning headlines throughout the upcoming week, as reports on existing and new home sales, durable goods orders, jobless claims and the third-quarter advanced gross domestic product (GDP) reading will be released. We also have a number of high-profile companies reporting earnings and we will bring those to you along the way.
As we head to press, Dow futures are higher by 40 points to 11,130 while the S&P 500 futures are higher by 6 ticks to 1,186. The Nasdaq 100 futures are showing an 11 point pop and are at 2,115.
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