Search This Blog

Search Tool

Asian Markets at Close Report

European Markets at Close Report

Jul 11, 2016

U.S. Stock Market Future Indications, by MarketWatch - July 11, 2016: U.S. Stocks Futures Climb, With S&P Near Record High

Sara Sjolin

Wall Street was set for firm gains on Monday, with the S&P 500 index within striking distance of a record high after a surprisingly strong jobs report last week fueled a stock-buying spree.
Futures for the Dow Jones Industrial Average YMU6, +0.42%  climbed 47 points, or 0.3%, to 18,085, while those for the S&P 500 index ESU6, +0.38%  gained 4.50 points, or 0.2%, to 2,125. Futures for the Nasdaq-100 index NQU6, +0.53%  rose 15.25 points, or 0.3%, to 4,532.25.
“U.S. markets look set to open at their best levels this year with the S&P 500 close to its record high of 2,137 as the ripple out effect from Friday’s payrolls number looks set to percolate through to the start of a new week and the beginning of a new U.S. earnings season,” Michael Hewson, chief market analyst at CMC Markets, said in a note.
U.S. markets rallied on Friday after the nonfarm payrolls report showed 287,000 jobs were added to the economy in June, easily beating the 170,000 forecast. With continued uncertainty over the fallout of the U.K.’s Brexit vote and low inflation, the solid jobs number, however, isn’t seen as prompting a Federal Reserve rate hike any time soon, giving traders the best of both worlds at the moment.
Markets on Monday were also boosted by the election in Japan over the weekend. Prime Minister Shinzo Abe’s ruling coalition, led by his Liberal Democratic Party, won more seats in the upper house to now have two-thirds majority, which is seen as making it easier for policy makers to push through a bigger fiscal stimulus package this autumn to spur the economy. Japan’s Nikkei 225 index NIK, +3.98%  closed 4% higher.
Economic news: There were no major data on tap on Monday, but several Fed speakers make for a busy day on the economic calendar.
Kansas City Fed President Esther George will give a speech on the economy in Lake Ozark, Missouri at 10 a.m. Eastern Time.
She’s followed Cleveland Fed President Loretta Mester, who will speak about financial stability in Sydney, Australia at 9:30 p.m. Eastern.
Both are voting members this year on the policy-setting Federal Open Market Committee.
Earnings: The unofficial starting whistle for the earnings season sounds after the bell on Monday, when aluminum heavyweight Alcoa Inc. AA, +5.14%  releases second-quarter results. Shares were up 1.8% premarket.
Cintas Corp. CTAS, +0.88%  is also slated to report after hours. Later in the week, attention turns to banking results, with JPMorgan Chase & Co. JPM, +2.06% the first of the big U.S. banks to report on Thursday.
“Investment banking earnings have been on a slow decline for the last 12 months and with trillions of US dollar of global bond yields now in negative territory this week’s earnings announcements are likely to make for sobering reading,” Hewson from CMC Markets said.
Other markets: European SXXP, +1.03%  and Asian stocks posted firm gains across the board.
Oil prices CLQ6, -1.32% LCOU6, -1.22%  lost more than 1%, while gold GCQ6, +0.05% inched higher. The dollar rose against most other major currencies, with the ICE dollar index SXXP, +1.03%   up 0.5%.