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Room to rally | The S&P 500 traded less than 1% away from its all-time high, climbing to its highest level since early April. Equites are extending a rebound fueled by speculation that the Federal Reserve will be able to cut rates this year as higher-than-estimated jobless claims reinforced bets on policy easing. The advance in stocks has also been attributed to commodity trading advisers — who surf momentum — being modeled to buy shares this week. To Doug Ramsey at Leuthold, another 10% gain in the S&P 500 isn't out of the question statistically. He analyzed 80 years of data on bull-market rallies, focusing on those that happened when unemployment was this low and the economic cycle this mature. If the current rally meets the prior records for length and level, the S&P 500 would end the year at 5,705. Elsewhere, a $25 billion sale of 30-year bonds saw good demand. Treasury 10-year yields declined four basis points to 4.46%.
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