Futures Poised for Gains on Quiet Day

It’s rare when a day doesn’t carry any real estate news, macroeconomic data, a Treasury auction, or a prominent official speaking on the economy, but that’s precisely what we have today.  The direction of the market will be anyone’s guess, but so far futures for the S&P 500 are up by several points, while the U.S. dollar had shed some gains overnight and oil is above $72 per barrel again.

Today will determine whether the S&P ends the week climbing out of losses made from Monday to Wednesday, when it dropped close to 4%, or whether the index can build on yesterday’s gains. To end the week on par, it would have to increase 28 points to 946; so far in pre-session trading, futures are up 5 points to 923.

In an interview with the Financial Post, Noman Ali, portfolio manager at MFC Global Investment Management, said he expects equity markets to remain positive over the next six to 12 months, following the 40% gain in stocks since early March.

“The pace of the rebound has been the sharpest in any previous recovery,” Ali said. “In the near-term, the market probably stays sideways as concerns over inflation and some slower growth numbers will dominate.” 

He added: “We've seen in three months what we normally see in a recovery in nine months. So it's been a very sharp recovery.”