Stocks are drifting lower today after a big rally last week.
S&P 500 futures are down by about one-tenth of 1 percent, while most major indexes overseas are lower by about one-third to half a percentage point. Commodities and currencies are also painting a cautious picture in general.
Last week’s gains brought the S&P 500 to around its October highs, and the question now is whether investors will continue putting money to work at these levels or wait for a pullback. The market is also bracing for the onset of corporate earnings, punctuated by Alcoa’s fourth-quarter release tomorrow afternoon.
Macro risks are now taking a back seat after last week, when economic data in the United States and Asia showed continued signs of acceleration while politicians in Washington reached a compromise to avert feared tax increases and spending cuts.
— Option Monster