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Jun 7, 2016

U.S. Stock Market Future Indications Update, by MarketWatch - June 7, 21016: U.S. stock Futures Trim Gains After Productivity Data

Anora Mahmudova, Barbara Kollmeyer
U.S. stock futures pared gains shortly before the opening bell Tuesday after government data showed productivity of businesses and workers fell in the first quarter but by less than initially reported.
Labor costs were revised upward, suggesting wage inflation is ticking up. Investors are still grappling with implications of economic data in light of Federal Reserve’s tentative plans to normalize interest rates.

Dow Jones Industrial Average futures YMM6, +0.19%  were up 29 points, or 0.2%, to 17,944, while S&P 500 futures ESM6, +0.12%  added 2 points, or 0.1%, to 2,105. Nasdaq-100 futures NQM6, +0.10%  gained 4 points, or 0.1%, to 4,530.
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 Janet Yellen said investors shouldn’t place too much focus on last week’s disappointing job news, noting that other economic signals were strong right now.
To some, her comments didn’t drastically alter investors’ expectations for the pace of interest-rate increases. Most have already counted out a rate increase when the Fed meets next week. But to others, the Fed chief’s remarks built added suspense over when the next interest-rate hike is likely to be implemented, and even a sliver of uncertainty could stir market volatility.
“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, +1.03%  added 1.3%, and Asian markets ADOW, +1.61%  closed in positive territory.
Data on tap: A reading on consumer credit for April is expected at 3 p.m. Eastern.
Stocks to watch: Valeant Pharmaceuticals International Inc. VRX, -17.61%  said it swung to a first-quarter net loss of $1.08, and cut its 2016 adjusted earnings per share view to a range of $6.60, to $7. Shares slumped 13% in premarket trading.
Zimmer Biomet Holdings Inc. ZBH, -0.23%  said it would buy LDR Holding LDRH, +2.45% in a deal valued at about $1 billion. Shares of LDR soared 62%.
Ralph Lauren Corp. shares RL, -10.57% tumbled 7% in premarket trade after the company unveiled a restructuring plan aimed at boosting profitability.
HD Supply Holdings Inc. HDS, +0.63%  said it swung to a first-quarter net loss of 7 cents per share.
Shares of DryShips Inc. DRYS, +10.80%   were the biggest decliners in premarket trade Tuesday, plummeting 39% toward a split-adjusted record low, after the ocean transportation company disclosed in a filing that it defaulted on three bank loans.
Yahoo Inc. YHOO, -0.59%  rose 1.2% in premarket. 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.
Other markets: The dollar USDJPY, -0.02%  gave up some gains against the Japanese yen. However, the British pound was moving up against the greenback, after a pair of new polls showed prospective voters in the June 23 referendum on whether to keep the U.K. in the European Union or do a so-called Brexit were leaning slightly in favor of the “remain” camp.
Oil futures pushed higher, with Brent LCOQ6, +1.29%  topping $51 a barrel and WTI crude CLN6, +1.21%  climbing above $50 a barrel.
Gold futures GCQ6, -0.61%  eased $3.90, or 0.3%, to $1,243.40. Gold posted the highest close in two weeks on Monday.