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U.S. stocks poised for an opening rally

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U.S. stocks poised for an opening rally

por Figas » 7/7/2003 14:34

CBS MarketWatch
U.S. stocks poised for an opening rally
Monday July 7, 8:29 am ET
By Julie Rannazzisi


NEW YORK (CBS.MW) -- The U.S. stock indexes were readying for a rally at the open Monday as the dollar also flexed its muscles while Treasury bonds wavered.
Strategists believe the second-quarter reporting season, which begins in earnest next week, will be crucial in determining whether the nearly four-month old rally in equities can continue or whether it has run its course.

Wall Street analysts expect second-quarter earnings to grow 5.4 percent year-over-year. Two Dow components will unearth their results this week: Alcoa and General Electric.

In the futures pits, the September S&P 500 contract put on 9.20 points, or 0.9 percent, while the Nasdaq 100 contract rallied 18.50 points, or 1.5 percent.

No economic reports are due out on Monday in a week that will see few releases of significance. Among them: weekly jobless claims, the June producer price index and the University of Michigan's preliminary reading on July consumer sentiment.

Government bonds slipped, adding to last week's brutal losses as investors continued to flee fixed-income issues amid growing expectations that an economic recovery will take hold in the second half of the year.

The 10-year Treasury note slipped 2/32 to yield (CBOE^TNXNews) 3.66 percent while the 30-year government bond eased 3/32 to yield (CBOE^TYXNews) 4.69 percent.

In the currency sector, the U.S. dollar rose against its major trading counterparts, climbing 0.1 percent to 118.10 yen while the euro slid 1.2 percent to a 2-month low at $1.1352.
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