Wednesday's Brew (Nov 1)

Enjoy your fresh morning coffee with our summary of the market outlook for the day and a medley of important information you should find useful. Stock futures across the Dow, S&P 500 and NASDAQ Indices were indicating a higher open to the day, but key economic data on tap for the day and later in the week could restrain the market's ability to make a convincing move. Ben Bernanke speaks today, and may be the most important market-moving factor of the day, outside of corporate EPS reports.

OVERSEAS MARKETS

The Hang Seng Index rose 0.71%, while the NIKKEI 225 dipped 0.15% today. Benchmark indices in Hong Kong, India, Australia and Indonesia all rose to record levels. We could look to several factors for the Asian enthusiasm. China's new hands-on stance with North Korea, and the appearance of a desire to resolve the world's concerns has brought hope to the situation. Also, yesterday, the International Monetary Fund stated that China should let its currency trade more freely, and the yuan strengthened. In Singapore, EMTA, a trade association hosted a forum on recent economic and political developments in emerging markets.

Shares across Europe were higher so far, led by mining shares as mineral prices including nickel, copper and zinc have strengthened recently. In London, the FTSE 100 was up approximately 0.66%.

ECONOMIC DATA & NEWS

On this first day of November, we may get a sign of whether it will be a season of Thanksgiving or not with the Institute of Supply Management's release of its manufacturing index for October. Economists are looking for a reading of 53.0, compared to September's reading of 52.9. Also, September construction spending will be released today. Economists expect the data to show no growth, versus an increase of 0.3% growth in August. Later today, Fed Chairman Ben Bernanke will keynote the Opportunity Finance Network conference in Washington, D.C.

Since the first publishing of this article, the ISM released its data on manufacturing and it showed poor growth in the sector. The index measured 51.2, below the 53 expectation by economists. Stocks have since taken a dip.

COMMODITIES

We waited until after the release of the oil and distillates inventory data before writing this portion of the issue today. Crude is little changed after the report of the inventory data. Crude stocks increased to a level 12% above the five-year average for this week. Distillate levels declined however, as refinery capacity increased 2.7% as the maintenance season is over.

Gold strengthened as capital seems to be finding its way to the commodity and out of stocks on economic weakness.

STOCKS

Reporting earnings on Wednesday are Time Warner, Prudential Financial, Devon Energy, Dominion Resources, Newmont Mining, Allergan Inc., and Marsh & Mclennan. We hope you enjoyed "Today's Morning Coffee" and wish you a good day trading. See our disclosure at the Wall Street Greek site.