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Jun 8, 2016

U.S. Stock Market Future Indications Update - June 8, 2016: U.S. Stocks Futures Rise as Oil Breaks Above $51, Dollar Tumbles

marketwatch.com
 
Ellie Ismailidou, Carla Mozee
 
U.S. stock futures moved higher Wednesday, as oil prices broke above $51 a barrel and the dollar tumbled to a one-month low, while investors awaited fresh data on available jobs and crude oil supply in the U.S.

Futures for the Dow Jones Industrial Average YMM6, +0.15%  were up 32 points, or 0.2%, at 17,965, and futures for the S&P 500 ESM6, +0.15%  picked up 4 points, or 0.2%, at 2,114. Futures for the Nasdaq Composite NQM6, +0.19%  were higher by 9 points, or 0.2%, at 4,523.
The moves came after Tuesday, the Dow industrials DJIA, +0.10% briefly topped 18,000 for the first time since April and the S&P 500 index SPX, +0.13%  posted its highest close in nearly 10 months, ending less than 1% off its record of 2,130.82, set May 21, 2015.
But the Nasdaq Composite Index COMP, -0.14% shed 0.1%, weighed on by biotech shares.
“Stocks…squeezed out a new high for the year yesterday, but it has been a slow crawl higher in the wake of last Friday’s U.S. employment report and the subsequent dovish tone to [Federal Reserve Chairwoman Janet] Yellen’s speech on Monday,” said Simon Smith, chief economist at FxPro, in a note.
“Once again, this demonstrates the waning impact that low rates and monetary policy in general is having on stocks and asset markets in general,” he added.
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Energy stocks, which helped nudge the S&P 500 higher, will be back in focus Wednesday as oil prices CLN6, +1.33% LCOQ6, +1.56%  traded above $51 a barrel. Brent crude was above $52 a barrel ahead of Wall Street’s open. West Texas Intermediate futures on Tuesday settled at their highest since July.
The Energy Information Administration is expected to release its weekly U.S. crude supply report at 10:30 a.m. Eastern Time. Ahead of that report, data showed crude imports into China rose 39% in May from the year-ago period, in part on demand from privately owned refineries.
“This extra demand has boosted not only the price of oil, but also optimism that the world’s second- largest oil consumer may be arresting its economic downturn—something which would be supportive for oil and other commodities,” said Mihir Kapadia, chief executive at wealth-management firm Sun Global Investments, in a note.
Economic docket: The Labor Department is due to release data at 10 a.m. Eastern on the number of available jobs in April. The job openings report will include the quits rate—a measure of worker willingness to leave one job for another—and the hiring rate.
The Census Bureau is slated to release its first-quarter report on services-sector activity at 10 a.m. Eastern. See:MarketWatch’s economic calendar
Corporates: Lululemon Athletica Inc. LULU, -0.89%  shares have recovered after earlier falling in premarket trade. The yoga wear retailer reported earnings and gave a second-quarter sales forecast that was largely below expectations.
UnitedHealth Group Inc. UNH, -0.88%  inched higher by 0.4% ahead of the bell after the company raised its quarterly dividend by 25%.
Amazon.com Inc. AMZN, -0.41%  plans to invest $3 billion in India, with CEO Jeff Bezos saying he sees “huge potential” in the economy.
Yahoo Inc. YHOO, -0.92% is aiming to raise $1 billion in an auction of about 3,000 patents.
Dave & Buster’s Entertainment Inc. PLAY, +0.94%  jumped 6.3% after late Tuesday the company raised its yearly outlook and said its board approved a $100 million share buyback plan.
Gevo Inc’s. GEVO, +50.45%  share skyrocketed by 90% premarket after the company said Tuesday the first two commercial flights using its renewable alcohol to jet fuel technology were flown by Alaska Airlines ALK, +1.72%
Verint Systems Inc. VRNT, +2.55%  late Tuesday posted a wider quarterly loss. The software and services company also reaffirmed its outlook for the year ending January 2017.
Catabasis Pharmaceuticals Inc. shares CATB, -3.79% in late Tuesday trade tumbled more than 50% after the biotech said its cholesterol treatment missed its study goal.
Other markets: Asian stocks were mixed, with Japan’s Nikkei Average NIK, +0.93%  up 0.9%, but the Shanghai Composite SHCOMP, -0.30%  down 0.3%.
The dollar index DXY, -0.31%  was down 0.3%, while gold futures GCQ6, +1.13%  were up over 1%.
European stocks SXXP, -0.38%  were moving lower. Attention was turning to the bond market as the European Central Bank began purchasing corporate bonds.