Trading in the major U.S. index futures suggest a cautious start by Wall Street stocks on Monday following their record run in the previous weeks. Earlier in the global trading day, armed with optimism concerning the global economy in general and the domestic economy in particular, Asian stocks rallied. The European markets are also relaying optimism despite the scanty economic and corporate news flow from the region. Meanwhile, the domestic markets get to digest earnings from Campbell Soup (CPB), the results of a lesser important national manufacturing survey and a few M&A announcements.
As of 6:15 pm ET, the Dow futures are slipping 3 points, the S&P 500 Index futures are receding 0.20 points and the Nasdaq 100 futures are moving down 2.25 points.
U.S. stocks extended their gains in the week ended May 17th, rising for the fourth straight week, as economic data continued to vouch for the strength of the recovery that has been underway in the domestic economy.
On the economic front, the markets get to digest a few key economic reports in the unfolding week after the flurry of data released last week. The focus of the week is likely to be on a speech by Federal Reserve Chairman Ben Bernanke, the National Association of Realtors' existing home sales data for April, the Commerce Department's new home sales report for April, the weekly jobless claims report, the minutes of the FOMC meeting held between April 30th and May 1st and the Commerce Department's durable goods orders report for April.
The Chicago Federal Reserve's national activity index for May, the Federal House Finance Agency's house price index for March and announcements concerning the Treasury auctions of 2-year, 5-year and 7-year notes round up the economic events of the week.
The Chicago Federal Reserve is due to release its monthly index measuring overall economic activity at 8:30 am ET.
In corporate news, reports suggest that Yahoo! (YHOO) has decided to buy social blogging service Tumblr for $1.1 billion.
A Wall Street Journal report suggested that Chesapeake Energy (CHK) has tapped Robert Douglas Lawler, a Anadarko (APC) executive, as its next CEO, replacing its co-founder Aubrey McClendon.
Elan (ELN) announced deals to buy Austria's AOP Orphan for 263.5 million euros and a 48 percent stake in Dubai's Newbridge Pharma. Additionally, the company announced a new $200 million stock buyback program and a proposal to offer $800 million in aggregate principal amount of senior notes due 2021.
The major Asian markets advanced strongly, encouraged by Wall Street's resilience in the wake of positive economic evidence. Meanwhile, the South Korean market bucked the uptrend, with the Kospi average declining modestly on geopolitical concerns after neighbor North Korea resorted to a series of missile launches.
Japan's Nikkei 225 average opened higher and advanced steadily until the mid-session. Thereafter, the index went about a consolidation move before closing up 222.69 points or 1.47 percent at 15,361. The gains came despite the firming up of the yen
Sharp, Tokuyama and Japan Steel Works all rallied over 16 percent, while Tokyo Electric Power, Mitsubishi Motors, Nippon Yusen and Kobe Steel were also among the best performers of the session. Meanwhile, banks, real estate, pharna, cement, bank and utility stocks came under selling pressure.
Australia's All Ordinaries opened higher and rose sharply in early trading. With the buying momentum slowing, the index began moving roughly sideways in late morning trading. After consolidating till the mid-session, the index gave back some of its gains over the course of the afternoon and yet closed up 25.60 points or 0.50 percent at 5,185. Most sector stocks advanced modestly, with the exception of healthcare stocks.
Hong Kong's Hang Seng closed at 23,493, up 410.35 points or 1.78 percent, and China's Shanghai Composite Index rallied 17.12 points or 0.75 percent before closing at 2,300.
On the economic front, Japan's Cabinet Office upgraded its assessment of the domestic economy, citing the positive influence a weaker yen has on exports and factory output. The Cabinet Office said the Japanese economy is picking up slowly as opposed to its earlier commentary that the economy is showing signs of picking up, with weakness seen in some areas.
Final estimates released by Japan's Cabinet Office showed its leading economic indicators index rose to 97.9 in March from 97.4 in February, upwardly revised from the previously reported reading of 97.6. The coincident index rose 1.3 points to 93.8, while the lagging index was up 0.5 points to 87.6.
The upward momentum in Europe is intact, with all the three major averages in the region opening higher and moving mostly sideways thereafter.
In corporate news, budget carrier Ryanair reported full year profits that rose 13 percent and also came in ahead of estimates by most analysts.
A report released by the Rightmove showed that house prices in the U.K. rose for the fifth straight month, advancing 2.1 percent month-over-month in May, as inventories shrank. Annually, prices were up 2.5 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.