May 20, 2013-Stocks Look to a Cautious Start Following Recent Gains

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. 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.