Market Notes - December 1, 2010

U.S. stock futures rose sharply, following a rally in both European and Asian markets. This comes after strong manufacturing data in China and encouraging words from the European Central Bank that they are willing to support other struggling European nations if needed.

On the domestic front, there has already been a lot economic data released this morning. Mortgage applications for new homes rose 1.1% last week after rising 14.4% in the previous week. The average mortgage rate increased six basis points to 4.56% last week, after reaching a low of 4.30%. The rise in rates slowed refinancing applications, which dipped 21.6% last week.

The economy created 93,000 private sector jobs in November, according to the latest report from ADP. This follows a rise of 82,000 in October, which was revised higher from the originally reported 43,000. A separate report from Challenger, Gray & Christmas showed planned job cuts edged up in November.

U.S. non-farm productivity grew faster than previously estimated in the third quarter, as employees squeezed more output from workers and kept costs low. Productivity rose at an annual rate of 2.3% rather than the 1.9% pace reported last month, after contracting 1.8% in the second quarter. Still to come at 10:00 am ET, the ISM manufacturing index is expected to remain unchanged for November and at 2:00 pm the Federal Reserve’s region-by-region assessment of the economy, the Beige Book, is released.