From wsj.com’s “U.S. Stock Futures Point to Tepid Weekly Gains for S&P 500” posted early Friday:
U.S. stock futures wavered Friday, indicating that the S&P 500 index may end the week with muted gains as trading volumes remain thin during the peak summer vacation period…
Investors continued to try to reconcile signals that the economic recovery may be uneven with expectations of further stimulus from governments and central banks, which might push more cheap money into financial markets. With government bonds in many developed countries offering yields that are below expected inflation levels, investors in recent months have been flooding into risky asset classes including stocks in a search for higher returns.
“More so than ever before, equity markets probably are not the best reflection of real economic conditions in the U.S.,” said Derek Halpenny, head of research for global markets in the European region at MUFG Bank. “The market’s convinced that the Fed will do more if required, and therefore the risk of not being long equities is higher than not being in it. That helps to keep the market supported.”
My take: The sun’s not up and Apple is already in record territory.