Week Ahead Market Report: 7/6/2010

(MarketNewsVideo.com) -- Good morning, I'm KRISTIN BIANCO, with the Week Ahead Market Report for July 6, 2010.

In overseas equity markets this morning, Hong Kong's Hang Seng index moved up 1.2 percent. Japan's Nikkei 225 edged higher 0.8 percent and China's Shanghai Shenzen jumped 2 percent.

The German DAX jumped 2 percent. Britain's Footsie 100 soared 2.1 percent.

U.S. S&P 500 index futures were trading positive by 1 percent in Tuesday's pre-market action.

Crude oil was up marginally, hovering around $73 a barrel this morning.

Spot gold was flat on Tuesday morning, trading around $1,207 an ounce.

The Reserve Bank of Australia, the country's central bank, issued a bullish statement on growth prospects on Tuesday, lifting global investor sentiment and sending Asian and European stocks higher. The bank also announced today it would leave short-term interest rates unchanged at 4.5 percent.

Analysts are raising earnings estimates for U.S. companies with stocks coming off of the largest losses in 16 months. Investors remain worried that the economy will drift back into a recession as governments around the globe pledge to cut spending and reduce budget deficits.

Reis Incorporated, a real estate data compiler, said in a report that office vacancies in the U.S. rose to the highest level since 1993 in the second quarter, climbing from 16 percent in the first quarter to 17.4 percent. The weak economic recovery reduces demand from corporate tenants, according to the report.

On the economic front, the Institute for Supply Management's U.S. non-manufacturing index for June will be released on Tuesday. The consensus index level is 54, just under the 54.4 level reported in May.

On Thursday, initial jobless claims will be released with expectations for 465,000 new unemployment claims for the week of July 3rd. Continuing claims have been edging lower as discouraged workers leave the workforce and run out of benefits.

It will be quiet on the earnings front this week with only a few companies reporting.

On Wednesday, Family Dollar (FDO) will post profits with analysts expecting 76 cents per share.

Consumer products maker WD-40 (WDFC) will also be reporting earnings on Wednesday. The consensus forecast is 42 cents per share.

Earnings season starts next week with aluminum maker Alcoa (AA) scheduled to report on July 12th. The New York-based company is forecast to post second-quarter profits of 13 cents per share.

Join us on Friday for the Weekly Market Wrap and have a wonderful week.

The preceeding is a transcript of the MarketNewsVideo.com video published at: http://www.marketnewsvideo.com/?id=201007WeekAhead070710&mv=1.