Binky Chadha at Deutsche Bank said:
- Economic reports are due to improve, lifting U.S. stocks.
- Investors are suffering from data disappointment that has become extreme by historical standards – the typical pattern from here would be for fewer negative surprises and then positive ones.
- Economic data has been the key driver of equities, and explain why stocks have retreated in the past few weeks. Changes in jobless claims explain 88 percent of the S&P 500’s performance during the period.
- Any stock-market rally triggered by policy changes in Europe’s sovereign-debt crisis and slowing growth in emerging markets won’t last unless the economic data turn around.
Read the full article at http://www.bloomberg.com/news/2012-06-27/u-s-stock-futures-little-changed-bristol-myers-gains.html