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Jun 6, 2016

U.S. Stock Market Future Indications - June 6, 2016: Stock Futures Signal Opening Gains as Investors Await Word drom Yellen

marketwatch.com
 
Joseph Adinolfi, Barbara Kollmeyer
 
U.S. stock futures rose Monday as investors waited for remarks from Federal Reserve Chairwoman Janet Yellen to ascertain whether the central bank is still open to raising interest rates this summer after Friday’s abysmal jobs report.

Dow Jones Industrial Average futures YMM6, +0.26%  rose 61 points, or 0.3%, to 17,861, while S&P 500 futures ESM6, +0.19%  added 5.95 points to 2,103.75. Nasdaq-100 futures NQM6, +0.20%  inched up 12.50 points to 4,521.50.
U.S. stocks finished modestly lower Friday following news the economy created a paltry 38,000 jobs in May, which led some investors to believe that the Fed won’t raise rates at its meeting later this month. The S&P 500 closed virtually flat for the week.
“The equity reaction to Friday’s data was very telling, the market struggling to get excited about the continuation of low rates, instead focusing on the weaker economy. This is another sign that monetary policy is losing its impact on markets,” Simon Smith, chief economist at FxPro, wrote in a note to clients.
The dollar USDJPY, +0.45%  slumped to three-week lows after that data on Friday, but regained ground on Monday as Japanese officials jawboned the yen lower.
The pound GBPUSD, -0.6681%  tapped a three-week low of $1.4353 against the dollar after two new polls showed an increase in support for “Brexit,” which refers to the push for Britain to exit the European Union. The U.K.’s in/out referendum is scheduled for June 23. The pound has since recovered to around $1.4401.
The FTSE 100 index UKX, +1.03%  rose in London, up around 0.9% to 6,270.59, the best performance across European regional indexes so far as miners rose.
Read: 5 arguments in favor of a U.K. ‘Brexit’ from the EU—and 5 against
Yellen speaks: There are no top-tier U.S. economic figures due Monday, so investors will direct their attention to a speech from Yellen at the World Affairs Council of Philadelphia scheduled for 12:30 p.m. Eastern Time.
Investors are waiting to hear Yellen’s take on Friday’s jobs number—specifically, whether Fed officials view it as an anomaly, or as a sign of deeper troubles in the labor market, said John Canally, investment strategist and economist for LPL Financial.
“If she sticks to her recent script, the market can then move on from the jobs report,” Canally said.
Fed officials, including Yellen, suggested last month that the central bank was prepared to raise interest rates twice this year, and that the next hike could come as soon as this summer, provided the economy continued to improve.
Read: Yellen speech may be attempt at damage control
The market now sees only a 4% chance of a rate increase in June, according to the CME Group’s FedWatch tool. The odds of a rate increase in July have fallen to 30%, down from 42% before the jobs report.
Read: Investors face anxious quiet before Fed meeting, Brexit storm
Ahead of Yellen’s speech, Boston Fed President Eric Rosengren said he still expects a U.S. rate increase, despite the weak jobs figures. In prepared remarks for a speech in Finland on Monday, Rosengren said the May employment report was “disappointing,” but that it remains to be seen whether the data is actually a reflection of a broader slowdown or just an anomaly.
Stocks to watch: Adamis Pharmaceuticals Corp. ADMP, -46.03%  sank 26% in premarket trade Monday, after the biopharmaceutical company said the Food and Drug Administration will require more tests for its new drug application linked to a treatment for a severe allergic reaction.
French drug giant Sanofi SA SNY, +0.06% SAN, +0.01%  and U.S. partner Regeneron Pharmaceuticals Inc. REGN, +0.62%  announced positive news on a trial of their drug dupilumab in treating a skin condition.
Shares of Ocular Therapeutix OCUL, -40.84%  were halted in premarket. The company said its Phase 3 trial of pinkeye treatment failed to achieve primary endpoint
Other markets: Oil prices pushed higher on Monday, with Brent crude LCOQ6, +1.87%  up $51, or 1%, to $50.17 a barrel, and WTI oil for July CLN6, +2.14%  up 56 cents, or 1%, to $49.13 a barrel. Oil prices drew some support from reports of attacks on Nigeria’s pipelines and equipment.
Crude retreated on Friday after Baker Hughes reported a rise in the number of drilling rigs for oil in the U.S., the first increase in 11 weeks.
In Asia, the Nikkei 225 NIK, -0.37%  closed lower along with the Shanghai Composite Index SHCOMP, -0.16% while the Hong Kong Hang Seng Index HSI, +0.40% and Australia’s ASX 200 XJO, +0.78%  closed higher.