October 22, 2012-Stocks Look to Recover and Confirm Trend Support

After seeing earnings-induced weakness for the later part of last week, Wall Street sentiment seems to have revived. The U.S. index futures point to a higher opening on Monday. Across the Atlantic, some positive earnings have buoyed sentiment, while earlier in the global trading day, Asian stocks closed mixed, as growth concerns pre-occupied the minds of traders following the release of weak Japanese trade data. Earnings from some blue chip companies, including Caterpillar (CAT) may impact market mood going into the session. The Dow futures are rising 46 points, the S&P 500 futures are adding 6 points and the Nasdaq 100 futures are gaining 16.75 points. Some disappointing tech earnings and a few first-tier mostly positive economic data largely dictated sentiment in the week ended October 19th. The major averages meandered to a mixed close in the week. For the week ended October 19th, the Dow added 0.11 percent and the S&P 500 Index gained 0.32 percent, while the Nasdaq Composite retreated 1.26 percent. After a fairly positive inflow of economic tidings, the markets now turn their attention to the unfolding week, which has a few key housing reports and the FOMC announcement in its calendar. The closely watched Main Street events of the week include the 2-day FOMC meeting ending Wednesday, the Commerce Department's new home sales report for September, the National Association of Realtors' pending home sales report for September, the advance third quarter GDP estimate and the Commerce Department's durable goods orders for September.