Futures vs Fair Value

S&P futures vs fair value: up 14.60%. Investors Friday were eager to get in the market in the last minutes before the closing bell. Just like now, the pre-market activity also suggests positive outlook for the day. The decision of GM's reorganization and possibility of Chrysler's coming out out of it were received as good news among investors. Also, European Bourses reacted the PMI data favorably.

In this weeks calendar there are number of market movers, two of which is due today. At 8.30AM we have Personal income and outlays followed by the ISM Mfg Index at 10 AM. The Employment situation is due at 8.30 AM on Friday.

Meanwhile, the Personal income data just came out. The numbers beat the consensus. The consensus suggested a negative growth by 0.2%, however personal income increased during April by 0.5%. It beat not only the consensus but also the March's 0.2% decrease. With this great news, S&P futures added another two points, now up 16.6%. On the other hand, personal spending decreased by 0.1% which is better than the 0.2% that was widely expected.

Now the eyes turned to the ISM Mfg Index, which is a monthly survey of purchasing managers , that takes place in 50 states covering over 300 manufacturing firms.