Market Talk

Overarching dynamic influencing US stocks lately — QE2 expectations, dollar weakness, strength in the commodities complex — remains entrenched.

US dollar index slumping back near recent nine-month lows, surrendering whatever was left of Tuesday’s run-up. Euro comfortably back above $1.40 again. Oil and gold, however, not reacting as intently to USD’s retreat — oil down a little, gold only up a little.

Earnings before the open from AT&T, CAT and McDonald’s; AmEx, Amazon after the close. Weekly jobless claims at 8:30 a.m.; St Louis Fed’s Bullard speaks around 9:00 a.m.; Conference Board’s Sept LEI, Philly Fed Oct business index set for 10:00 a.m. ET.

S&P futures up 6.10, DJ futures up 52. Ten-year lower, yield at 2.48%.

US dollar relinquishes a chunk of yesterday’s strong gains, euro recaptures some lost ground, so US stock futures point moderately higher premarket, along with gold and oil.

It continues to be a formulaic, mechanical trade and likely remains so at least until we hear from FOMC on Nov. 3. Another boatload of 3Q earnings in store, but currency movements look to still be a key influence on the overall equity market.

Notable names on today’s earnings calendar include Boeing, Morgan Stanley and Wells Fargo — all due before the open. UTX 3Q bottom line looks a little better than expected, but 4Q may be weaker as company’s full-year view is a couple pennies below Street’s estimate.

S&P futures up 4.20, DJ futures up 25. Ten-year note lower, yield at 2.48%.

Premarket posture looks a shade more cautious, with a firmer US dollar, notable strength in Treasurys and US stock futures easing a little. European markets currently lower, euro flirts with $1.37 level.

Investors are beginning to focus more on upcoming 3Q corporate earnings reporting season, with Alcoa kicking off the parade after Thursday’s closing bell. Should make Friday morning interesting, as investors react to AA’s results, and also to September nonfarm payrolls report.

This morning we’ll see August pending home sales and factory orders, both at 10:00 a.m. ET.

S&P futures down 4.30, DJ futures down 32. Ten-year note higher, yield at 2.48%.