U.S. stock indices are trading flat overnight. Traders have largely ignored the weakness in the Euro over Greece concerns. This may mean that today’s menu of U.S. economic reports will have a bigger influence on stock prices.
The first report is Weekly Initial Claims. Traders will want to see improvements in the U.S. job situation in order to get a gauge of the developing U.S. recovery. The Consumer Price Index, due out at 7:30am CT, will give traders a clue about U.S. inflation. Leading Indicators and Philadelphia Fed will give traders information about the robustness of the recovery.
With cheap money expected to be around for an extended period of time, continue to look for the stock market to rise. A strong rally in the Dollar however, is likely to put pressure on equity prices due to profit-taking.