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Jun 15, 2016

U.S. Stock Market Future Indications Update, by MarketWatch - June 15, 2016: Stock Futures Gain Ground with Yellen Ahead

marketwatch.com

Anora Mahmudova, Carla Mozee
U.S. stock futures moved higher Wednesday as investors’ appetite for risk appeared to pick up ahead of an updated monetary-policy outlook from the Federal Reserve.

Market reaction to a pair of better-than-expected economic reports on manufacturing and inflation was largely muted.

Futures of the Dow Jones Industrial Average YMU6, +0.22% were up 43 points, or 0.2%, at 17,615, and futures for the S&P 500 index ESU6, +0.17%  were up 4 points, or 0.2%, to 2,069 Nasdaq-100 futures NQU6, +0.17%  tacked on 8 points, or 0.2%, to 4,426.
The moves were in line with strong gains in Europe equities SXXP, +1.20%  and in Asia, where Chinese stocks SHCOMP, +1.58%  climbed even as MSCI Inc. decided not to include mainland shares in its widely tracked indexes.
Wall Street has been battling a run of declines that continued Tuesday, leaving the S&P 500 SPX, -0.18%  down 0.2% at 2,075.32, led by a drop in financial stocks. The Dow Jones Industrial Average DJIA, -0.33%  fell 57.66 points, or 0.3%, to 17,674.82. The Nasdaq Composite Index COMP, -0.10%  slipped 0.1% to 4,843.55.
But investors appeared in the mood to pick up beaten-down stocks before the Fed releases its policy statement and fresh economic forecasts at 2 p.m. Eastern Time. Fed Chairwoman Janet Yellen will hold a press conference at 2:30 p.m. Eastern. The Federal Open Market Committee’s release will be closely watched for clues to the pace of rate increases in 2016.
“After May’s disappointing employment report and Chair Yellen’s shift in language thereafter, investors are all but certain that the Fed will refrain from acting at this meeting,” said Charalambos Pissouros, senior analyst at IronFX Global, in a note.
Read: ‘Dot plot’ to be best gauge of Fed’s mood after the jobs debacle
He added that IronFX expects Yellen to maintain a cautious yet optimistic stance in her comments and to use the meeting as a steppingstone to prepare investors for a move in July or September.
“Nevertheless, we believe that the FOMC is unlikely to rush into a hike without feeling confident that the recent setback in the labor data was indeed temporary, which in our view makes July an unlikely candidate.”
Data in the pipeline: Business conditions in the New York region rebounded in June after a weak reading in the prior month, the New York Fed said Wednesday.
U.S. producer prices rose a sharp 0.4% in May, as more expensive fuel put upward pressure on wholesale inflation.
Readings on industrial production and capacity utilization in May are set for release at 9:15 a.m. Eastern.
Corporates: Patriot National Inc. shares PN, -3.89% climbed 30% premarket after Ebix Inc. EBIX, +0.15%  offered to buy the insurance technology software maker for $9.50 a share.
Biotech firms Aegerion Pharmaceuticals Inc. AEGR, +41.35%  and QLT Inc. QLTI, -1.38%  said Wednesday a deal has been reached for Aegerion to be merged with a wholly-owned subsidiary of QLT. Aegerion shares were up 35% and QLT shares rose 17% in premarket trade.
Panera Bread Co. PNRA, +1.60%  said Wednesday it’s planning to drop all remaining artificial flavors, sweeteners, preservatives and colors from its Panera at Home products.
Whole Foods Market Inc. WFM, -2.90%  was told it has until the end of this month to fix “serious violations” discovered by FDA regulators during a February inspection of a Massachusetts plant. Whole Foods said the problems were fixed and it doesn’t understand why the FDA’s letter doesn’t acknowledge that.
Bed Bath & Beyond Inc. shares BBBY, -0.44%  may move after the company late Tuesday said it purchased One Kings Lane Inc., a flash-sales website that offers home furnishings.
Bob Evans Farms Inc. BOBE, +0.95%  shares may see action after the restaurant-chain operator and food distributor issued financial forecasts that fell short of expectations.
After the bell, Jabil Circuit Inc. JBL, -0.54%  is slated to release fiscal third-quarter earnings.
Other markets: Crude-oil prices CLU6, -1.72%  were down 1.3%, trading just below $49 a barrel. The U.S. Dollar Index DXY, -0.11%  slipped 0.2% to 94.758. Gold GCQ6, -0.16%  was modestly lower at $1,286.90 an ounce.
Read: Watch gold jump to $1,400 if U.K. votes to Brexit