May 06, 2013-Sentiment Remains Cautiously Optimistic at Record Levels

Sentiment on Wall Street remains optimistic despite the overbought levels of the markets. The index futures point to a higher open on Monday. Earlier in the day, Asian stocks reacted positively to better than expected jobs data released from the U.S. overnight, while European markets are seeing profit taking following their recent gains. The absence of any major trading catalysts both on the earnings and economic fronts could leave traders undecided, prompting them to take profits. Given the positive momentum in play in the markets, the major averages could attempt to consolidate around their recent highs. The Dow futures are rising 11 points and the S&P 500 futures are gaining 0.1 points, while the Nasdaq 100 futures are adding 3.50 points. U.S. stocks extended its gains in the week ended May 3rd, as encouraging data and relief over central bank support to boost growth spurred risk appetite in the markets. The S&P 500 Index hit record closing highs in successive sessions of the week, while the Dow Industrials scaled a record closing high.