July 22, 2013- Overbought Levels Leave Stocks Cautious

The overbought levels of the markets have left Wall Street nervous on Monday, as indicated by the U.S. index futures, which point to a slightly higher opening. Asian stocks closed mostly higher earlier in the global trading day, with the G20 communiqué lending some support, while the European markets are seeing some volatility and are currently mixed. The domestic markets could take cues from earnings from companies such as McDonald's (MCD), Halliburton (HAL) and Kimberly-Clark (KMB), while the existing home sales data for June due to be released shortly after the markets open may also render direction to the markets. The G-20 nations said in the concluding statement of their financial ministers and central bank governors meeting in Moscow that they have pledged to accelerate efforts to revive growth, which remains 'too weak' and 'fragile.' The G-20 also vowed to boost jobs by enhancing structural reforms and agreed to calibrate the pace of fiscal consolidation to economic conditions. The Dow futures are rising 5 points, the S&P 500 Index futures are moving up 1 point and the Nasdaq 100 futures are advancing 5.50 points.