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Jun 7, 2016

U.S. Stock Market Future Indications, by MarketWatch - June 7, 2016: U.S. stock Futures Show S&P Stretching for a Fresh Record

marketwatch.com

Barbara Kollmeyer
 
Stock futures pointed to a higher start for Wall Street on Tuesday, as investors’ appetite grew for assets seen as riskier, on the view that the timing of an interest-rate hike has been pushed out.

Dow Jones Industrial Average futures YMM6, +0.32%  rose 61 points, or 0.3%, to 17,975, while S&P 500 futures ESM6, +0.28%  added 6.7 points, or 0.3%, to 2,115.25. Nasdaq-100 futures NQM6, +0.39%  gained 17 points, or 0.4%, to 4,543.75.
The S&P 500 SPX, +0.49%  managed its best close of the year on Monday, advancing 0.5% to 2,109.41, and marked its longest streak of trading sessions — 41 days — without a 1% or more drop since July 2014.
Read: Buy these stocks that are breaking out — forget the S&P’s failure to launch
In a speech on Monday, Fed Chairwoman Yellen said investors shouldn’t place too much focus on last week’s disappointing job reports, noting that other economic signals were strong right now.
To some, her comments didn’t drastically alter investors’ expectations for the pace of how interest rates would rise. An increase at the Fed’s June meeting was already seen as not likely. But to others, the suspense over when the next interest-rate hike will come just builds on the latest Yellen comments.
“It is certainly too early to drive conclusions. Nevertheless, the probability of a June, or July, hike could be comfortably put on the shelf,” said Ipek Ozkardeskaya, market analyst at London Capital Group, in a note to clients on Tuesday. The Fed will hold its next policy meeting on June 14-15.
“Markets are now pricing in the Fed’s next move, if any, for the September meeting,” Ozkardeskaya added.
Rising alongside U.S. stock futures, the Europe Stoxx 600 index SXXP, +1.20%  added 1.3%, and Asian markets ADOW, +1.55%  closed in the black.
Data, Fed speaker on tap: Further clues on the Fed’s policy thinking could come later, when Atlanta Fed President Dennis Lockhart is interviewed by Bloomberg around 9 am Eastern Time.
Productivity and unit labor costs for the first quarter are due at 8:30 a.m. Eastern. A reading on consumer credit for April is expected at 3 p.m. Eastern.
Stocks to watch: Yahoo Inc. YHOO, +1.28%  could be in focus after Verizon Communications Inc. VZ, -0.41%  said it would submit a second-round bid of around $3 billion for Yahoo’s core internet business.
FedEx Corp. FDX, -0.34%  said late Monday it was lifting its quarterly dividend 60% to 40 cents a share, up from 25 cents previously, due to recent strength by the package shipper.
Goldman Sachs Group Inc. GS, +0.89%  is being probed by U.S. investigators over whether the bank broke the law when it didn’t raise the alarm over a suspect transaction in Malaysia, The Wall Street Journal reported, citing people close to the investigation.
Ahead of the open, HD Supply Holdings Inc. HDS, +0.63%  and Valeant Pharmaceuticals International Inc. VRX, -0.07%  are expected to report results
Other markets: The dollar USDJPY, +0.19%  firmed up against the Japanese yen. However, the British pound was moving up against the greenback, after a pair of new polls showed the June 23 referendum on whether to keep the U.K. in the European Union or do a so-called Brexit was leaning slightly in favor of the “remain” camp.
Oil prices pushed higher, with Brent LCOQ6, +0.49%  closing in on $51 a barrel and WTI crude CLN6, +0.40%  nearing $50 a barrel.
Gold prices GCQ6, -0.29%  eased $3.90, or 0.3%, to $1,243.40. Gold posted the highest close in two weeks on Monday.