Stocks are trying to rebound from yesterday's drop as investors await key economic news after the opening bell.
S&P 500 futures are up 0.3 percent, while most European markets are closed for May Day. Hong Kong and Mumbai were the biggest Asian movers, falling almost 1 percent each. Oil is holding its ground after a surprise rally and metals are trying to continue higher.
The S&P 500 dropped more than 1 percent and the Nasdaq 100 skidded 1.65 percent yesterday as investors took profits in long-term winners in areas including health care, consumer discretionary, and technology. It also came one session after economic growth missed estimates by a wide margin. Both indexes are attempting to hold support at their key 50-day moving averages.
Attention now turns to the Institute for Supply Management's manufacturing index and 10 a.m. ET, the first of three big month-end reports in the next week. Construction spending and revised consumer-sentiment numbers are scheduled for the same time.
Data from optionMONSTER's proprietary researchLAB market scanner indicates a shift in sentiment is underway as investors unload expensive stocks in favor of beaten-down commodity names. Producers of iron ore, copper miners, and steel makers have been especially strong in recent weeks. Energy, precious metals, and emerging markets have also outperformed.
Biotechnology and solar energy, the two leading industries over the last year, have dropped to the bottom of the rankings. Retailers and homebuilders are crumbling as well.
Social media may follow the trend today after LinkedIn cut guidance, sending its shares down more than 20 percent in early trading. Twitter and Yelp also plunged this week similar news. First Solar is indicated down 6 percent on weak results, and Visa slid 1 percent after warning that it will grow at the lower end of projections.
Most other companies that reported earnings are higher today. Gilead Sciences rose about 3 percent after beating estimates. Expedia rose more than 4 percent on strong revenue, and Century Aluminum may gain after surpassing consensus on the top and bottom lines.
The calendar remains active over the next week, with lots of energy earnings and key payroll reports on Wednesday and Friday.
Currencies are mixed today, with the euro continuing higher against the U.S. dollar but the yen falling.
