Stocks are set to build on yesterday’s strong gains, despite a sharp fall in the price of oil, down 1.6% at $48.57 a barrel.
Janet Yellen, the head of the Federal Reserve, is set to testify this morning before the US Senate Committee on Banking, Housing and Urban Affairs, but that does not seem to have prompted any reticence on the part of investors, judging by spread betting quotes, which point to a 57 point rise for the Dow and a near eight point advance for the broader-based S&P 500.
“Expectations have rapidly diminished over the Fed raising US rates in Q2 and the ongoing Brexit developments have sabotaged all efforts by the central bank to take action,” suggested Lukman Otunuga, a research analyst at forex trading platform FXTM.
“Although data in the States has followed a positive path, the global instabilities and potential threats of a Brexit to the global economy continues to force the central bank to re-evaluate its stance,” Otunuga added.
In corporate news, house builder Lennar Corporation (NYSE:LEN) cheered the market with news that the number of home sales secured in its fiscal second quarter was up 12% year-on-year, with the average price rising 4.0% to $364,000.
The shares were up 2.9% in pre-market trade, as earnings per share numbers (EPS) beat market expectations. The market had been expecting EPS of 86 cents, which the company beat by nine cents.