Showing posts with label futures. Show all posts
Showing posts with label futures. Show all posts

Stock futures retreat on overseas concerns (AP)

NEW YORK – Stock futures fell Tuesday following new worries about rising inflation in Asia and the possibility Ireland might need a bailout.

Asian markets fell overnight after South Korea's central bank raised interest rates to curb growing inflation. There has been speculation in recent days that China will have to take similar steps soon.

Investors will receive a report on inflation in the U.S. at the wholesale level later Tuesday. It is expected to show that the producer price index rose 0.8 percent in October, double September's growth. However, excluding volatile food and energy costs, costs are likely to rise 0.1 percent, matching September's increase.

Increasing interest rates would not only act to slow inflation, but also to slow rampant growth in Asia. The moves stand in stark contrast to the U.S., which has been trying to drive interest rates even lower to spark growth, which has been sluggish.

Asian economies have been expanding rapidly while the U.S. and much of Europe have been slow to recover from a global recession. The strength in Asia has helped many companies post big profits. So any potential for a slowdown in Asia without further expansion elsewhere could cut into earnings, which hurts stocks.

While Asian countries are dealing with strong growth, European finance ministers are meeting Tuesday. They are expected to discuss a potential bailout for Ireland, which is the latest country to struggle with mounting government debt. Similar problems in Greece earlier this year hurt stocks worldwide as its government received aid to help cover debt problems.

Major European indexes fell Tuesday and the dollar again strengthened against the euro. The dollar is hovering near its highest level against the euro since late September.

Ahead of the opening bell, Dow Jones industrial average futures fell 76, or 0.7 percent, to 11,097. Standard & Poor's 500 index futures fell 7.80, or 0.7 percent, to 1,188.00, while Nasdaq 100 index futures fell 20.50, or 1 percent, to 2,107.50.

Britain's FTSE 100 fell 1.5 percent, Germany's DAX index dropped 0.8 percent, and France's CAC-40 fell 1.6 percent. Japan's Nikkei stock average fell 0.3 percent, while Hong Kong's Hang Seng fell 1.4 percent.

In corporate news, Home Depot said expense controls helped its earnings jump 21 percent. Sales growth remains slow though as consumers avoid major purchases with the economy still weak and unemployment high.

General Motors is expected to raise the price range for its common stock to $32 to $33 when it launches an initial public offering Thursday. Strong demand for the shares has led the automaker to raise the IPO price from a range of $26 to $29.

The higher price would help the government recoup more of the taxpayer-finance bailout that General Motors received.

Meanwhile, Treasury yields retreated from a three-month high as investors moved into the safety of bonds. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.92 percent from 2.95 percent late Monday.


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Stock futures fall on China, euro zone concerns (Reuters)

NEW YORK (Reuters) – U.S. stock index futures fell on Tuesday on continued concerns over a possible interest rate hike in China and sovereign debt woes in Europe.

* Chinese shares sank 4 percent to a one-month low as investors worried about a government clampdown on inflation, pressuring commodity prices. Crude oil lost more than 1.5 percent, gold was off 0.9 percent, while the U.S. dollar (.DXY) rose modestly.

* Shares in Europe fell 1.4 percent ahead of a meeting of euro zone finance ministers, who will try to find a way to end Ireland's debt crisis but Dublin resisted pressure to seek a bailout.

* Wal-Mart Stores Inc (WMT.N), a Dow component, posted higher quarterly profit and raised its full-year earnings forecast, but U.S. same-store sales declined. The stock closed Monday at $53.95.

* Home Depot Inc (HD.N), another Dow piece, reported quarterly earnings and revenue that topped expectations. The stock closed at $31.39 on Monday.

* Also due to report are Abercrombie & Fitch Co (ANF.N) and TJX Cos Inc (TJX.N). The results will give insight into how retailers are faring ahead of the upcoming holiday shopping season.

* S&P 500 futures fell 6.6 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures sank 73 points, and Nasdaq 100 futures lost 19.25 points.

* Economic data due later Tuesday include the producer price index for October, industrial production for October and the National Association of Home Builders (NAHB) survey for November.

* Core producer prices were seen up 2.1 percent, compared with 1.6 percent last month, while industrial output was forecast to rise 0.3 percent versus a fall of 0.2 percent last month, and the NAHB survey was seen at 17, compared with 16 last month.

* U.S. tax authorities withdrew a summons against UBS AG (UBS.N)(UBSN.VX) aimed at getting data on the bank's U.S. clients, the Swiss government said, ending a dispute that had threatened to bring the bank down. U.S.-listed UBS shares closed Monday at $17.10.

* A day after Caterpillar Inc (CAT.N) announced a huge acquisition proposal, Raymond James upgraded the stock to "outperform" from "market perform." The Dow component closed at $81.82 on Monday.

* U.S. stocks slipped Monday as concerns that the U.S. Federal Reserve may scale back efforts to stimulate the economy muted optimism over takeover activity.

(Editing by Jeffrey Benkoe)


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Stock index futures signal lower open (Reuters)

(Reuters) – Futures for the Dow Jones industrial average, the S&P 500 and the Nasdaq 100 fell 0.8 to 1.2 percent, pointing to a sharply weaker start for equities on Wall Street on Friday.

Thomson Reuters/University of Michigan Surveys of Consumers release at 1455 GMT (9:55 a.m. ET) preliminary November consumer sentiment index. Economists in a Reuters survey expect a reading of 69.0 compared with 67.7 in the final October report.

Companies announcing results on Friday include Agilent Technologies (A.N), D.R. Horton (DHI.N) and JCPenney (JCP.N).

G20 leaders drew a veil over their economic policy disputes on Friday, agreeing to tackle tensions that have raised the specter of currency wars and giving the nod to countries that have seen huge capital inflows to impose controls.

At 1530 GMT, ECRI releases its weekly index of economic activity for November 5. In the prior week the index read 123.2.

The chief executive of Wal-Mart Stores Inc's (WMT.N) Asia operations said he would not comment on whether it was bidding for Indonesian retailer Matahari's (MPPA.JK) hypermarket business.

Yahoo Inc (YHOO.O) called a media report it was planning to cut one-fifth of its workforce "misleading and inaccurate," but the Web portal stopped short of ruling out any layoffs.

Shares in California Pizza Kitchen Inc (CPKI.O) fell 4 percent after the bell on Thursday as it reported results.

European stocks dropped on Friday, losing ground for the third straight session, hurt by escalating fears over Ireland's debt problems that also dragged the euro to six-week lows versus the dollar. The FTSEurofirst 300 (.FTEU3) index of top European shares was down 1.3 percent. * EU leaders sought to reassure bondholders unnerved by Ireland's fiscal problems they would not be forced to take a writedown, but Ireland's Prime Minister said recent French and German comments had aggravated the problem.

A statement by France, Germany, Italy, Spain and Britain was issued at the Group of 20 summit in Seoul after spreads on Irish 10-year government bonds over German bunds surged to a record high, hitting the debt of Portugal and Spain and the euro.

Japan's Nikkei (.N225) dropped 1.4 percent on Friday, with profit-taking intensifying as Chinese shares fell sharply and as oil and other commodity prices plunged.

Resource-related stocks will be in focus as crude oil dropped $2 a barrel to below $86. Key base metals prices fell 1.6 to 2.6 percent.

On Thursday, the Dow Jones industrial average (.DJI) fell 73.94 points, or 0.65 percent, to 11,283.10. The Standard & Poor's 500 Index (.SPX) shed 5.17 points, or 0.42 percent, to 1,213.54. The Nasdaq Composite Index (.IXIC) lost 23.26 points, or 0.90 percent, to 2,555.52.

(Reporting by Atul Prakash; Editing by Erica Billingham)


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Stock index futures dip as dollar rises (Reuters)

NEW YORK (Reuters) – U.S. stock index futures fell on Monday as a rise in the U.S. dollar weighed on commodity prices and looked set to put pressure on natural resource stocks.

The dollar has traded in a strong inverse relationship to U.S. equities recently. An unwinding of dollar short positions that began after solid U.S. jobs data last Friday gathered pace on Monday, while concerns over euro zone debt hurt the euro. The dollar was up 0.6 percent against a basket of currencies.

Metals prices slipped as the dollar rose, while oil prices fell 0.3 percent toward $86 a barrel, easing back from two-year highs earlier in the session. Gold slipped for the first time in three sessions but remained near record highs.

Alcoa Inc (AA.N), the largest U.S. aluminum producer, fell 1.4 percent to $13.80 in premarket trade, while other metals producers, such as Newmont Mining Corp (NEM.N) and Freeport McMoRan Copper and Gold Inc (FCX.N), also edged lower although volume was light.

"The dollar weakness, which has been one of the driving forces in the recent rally, is rebounding, causing a rethink in the dollar trade," said Andre Bakhos, director of market analytics at Lek Securities in New York.

"That coupled with calls by many for profit-taking has caused an early morning retreat."

S&P 500 futures fell 3.6 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 14 points, and Nasdaq 100 futures lost 6 points.

U.S. stocks rose for the fifth straight week last week and have passed levels not seen since before the bankruptcy of Lehman Brothers, helped by Republican gains in the U.S. midterm elections and on news of more cheap money from the U.S. Federal Reserve.

The S&P 500 faces strong resistance at around 1,228, a key retracement of the benchmark's slide from its historic high in 2007 to the 12-year low in March 2009. The S&P closed at 1225.85 on Friday.

AOL Inc (AOL.N) is exploring strategic options, which include a possible tie-up with Yahoo Inc (YHOO.O), and has retained financial advisers to do so, the Wall Street Journal reported, citing unnamed sources. Yahoo's shares rose 1.7 percent to $16.55.

Intel Corp (INTC.O) was up 1.4 percent to $21.54 before the bell after UBS raised the stock's rating to "buy" from "neutral." UBS estimates the global semiconductor industry will see another couple of quarters of inventory adjustments.

Saudi Arabian Airlines ordered 12 Boeing Co 777-300 "Extended Range" planes for $3.3 billion, in addition to eight 787 Dreamliners, Boeing (BA.N) said Sunday. However, Boeing's shares traded down 1.4 percent to $70.30 in premarket trade.

Japan's Nikkei average rose 1.1 percent to a three-month closing high on Monday, adding to gains last week as investors shifted toward global equities on improving prospects for the U.S. economy. European stocks edged lower in early trade, with telecommunications shares such as Vodafone Plc (VOD.L) among the biggest drags.

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)


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Stock futures edge lower ahead of jobs report (AP)

NEW YORK – Stocks were headed for a lower open Friday ahead of a monthly report on unemployment, which has remained stubbornly high despite other bright spots in the economy.

Traders are hoping that the jobs report won't upset a five-day rally that lifted the Dow Jones industrial average to its highest point since early September 2008, just before the peak of the financial crisis.

Stocks and bonds have been rallying since late August in anticipation of the Federal Reserve's massive bond-buying program, which was announced on Wednesday. The $600 billion plan from the Fed was slightly more than many were expecting and helped the Dow add 321 points over the past week.

Later Friday morning, the Labor Department will release its monthly employment survey on payrolls and the national unemployment rate, the most closely watched report on the economic calendar.

Analysts are expecting that employers added just 60,000 jobs in October, fewer than the 100,000 needed to keep pace with population growth, and far fewer than the 200,000 needed to start returning the 15 million unemployed Americans to work. The unemployment rate is expected to remain 9.6 percent for a third straight month.

U.S. stock futures were edging lower ahead of the opening bell, following slight declines in European indexes.

Dow Jones industrial average futures were down 24, or 0.2 percent, to 11,363. S&P 500 futures fell 4.10, or 0.3 percent, to 1,214.50, while Nasdaq 100 futures were off 7.0, or 0.3 percent, at 2,177.50.

Stocks rallied on Thursday on enthusiasm over the Fed's bond-buying spree. The Dow Jones industrial average surged 219 points to close at 11,434.84, the highest closing level since just before Lehman Brothers went under in September 2008. All three major U.S. stock indexes reached their highest levels of 2010 this week.

The FT-SE 100 in Britain and the CAC-40 in France were both down about 0.1 percent.


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Stock futures up sharply after Fed meeting (AP)

By DAVID K. RANDALL, AP Business Writer David K. Randall, Ap Business Writer – 46?mins?ago

NEW YORK – Stock futures pushed higher Thursday, a day after the Federal Reserve announced a $600 billion plan to stimulate the economy.

Key market indicators were up more than 0.5 percent ahead of the opening.

The Fed announced Wednesday afternoon that it would buy Treasury bonds in an effort to spur consumer spending and investments in stocks. The central bank was unusually detailed in its announcement, telling investors that it planned to spend $75 billion a month on bonds until at least the middle of next year.

The Dow Jones industrial average has risen about 12 percent since the Fed began hinting in late August that it planned to buy bonds. The extent of the central bank's move was in line with most market estimates.

The announcement is helping to boost share prices overseas as well. The Stoxx 50 index, which tracks blue chip companies in Europe, is up more than 1.1 percent.

Investors sent shares of BHP Billiton, the world's largest mining company, up 5.1 percent after the Canadian government rejected its $38.6 billion bid to buy Potash Corp. of Saskatchewan. Unilever PLC gained 5 percent in pre-market trading after it announced that its third quarter net profit rose 19 percent. Like other multinational corporations, the maker of household products noted that much of its revenues rose thanks to growth in emerging markets.

Financial shares in Europe rose ahead of meetings by the Bank of England and the European Central Bank.

Shares on the Shanghai Composite index, the most-followed measure of China's stock market, are up 1.8 percent.

The Fed's plan will increase the supply of dollars and most likely push the value of the currency down. The dollar is at its lowest level since December 2009 against a broad basket of currencies.

Finance ministers in emerging economies like China and Brazil have criticized the Fed's stimulus plan and said that the added supply of investment dollars could lead to asset bubbles in their countries.

Dow Jones industrial average futures were up 60, or 0.6 percent, to 11,237 before the opening bell. S&P 500 futures were up 7.1, or 0.6 percent, while Nasdaq 100 futures were up 12, or 0.5 percent, to 2,176. The Dow and the Nasdaq both closed Wednesday at yearly highs.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 2.57 percent.

Investors will likely turn their attention to a full plate of economic and corporate earnings reports on Thursday.

The Labor Department will announce its weekly report on first-time unemployment benefit applications before the market opens. Last week, the report showed that unemployment claims dropped slightly.

Kraft Foods Inc., Starbucks Corp. and CBS Corp. will announce their third-quarter earnings reports Thursday as well.


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Stock futures rise as Fed fuels risk appetite (Reuters)

NEW YORK (Reuters) – U.S. stocks index futures rose on Thursday as more monetary stimulus from the U.S. Federal Reserve aimed at boosting the ailing economy fueled investor risk appetite.

The Fed plan to buy $600 billion in Treasuries, announced on Wednesday, was more than anticipated but less than hoped for by many economists.

Mining stocks were among the biggest gainers in the European market, with metal prices driven by a weaker U.S. dollar after the Fed announcement. The dollar fell 0.8 percent against a basket of major currencies (.DXY).

World stocks rose strongly, touching new two-year highs, as the afterglow of the Fed's asset buying plan spread across markets.

"The Fed said just the right thing at the right time, right temperature. I would like to see more volume pick up in trading, but we are seeing some good momentum that could carry this rally to the end of the year," said Tom Schrader, managing director of U.S. equity trading at Stifel Nicolaus Capital Markets in Baltimore.

U.S.-listed shares of BHP (BLT.L)(BBL.N) were up 4.7 percent at $77.45 in premarket trade after the Canadian government blocked its $39 billion bid for Potash Corp of Saskatchewan Inc (POT.TO). New York-traded shares of Potash (POT.N) fell 4.5 percent to $139.00 premarket.

U.S.-listed shares of Unilever Plc (ULVR.L)(UL.N) jumped 5.6 percent to $30.99 premarket after it matched forecasts with a rise in third-quarter sales.

New claims for unemployment benefits, due at 8:30 a.m. EDT (1230 GMT), are expected to edge up to 443,000 after dropping to a three-month low of 434,000 the week before. The forecast is based on a survey by Reuters of 42 economists. It is the final jobless report before the closely watched non-farm payrolls data on Friday.

S&P 500 futures rose 9.9 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. The futures were above 1200 for the first time since early May.

Dow Jones industrial average futures gained 65 points, and Nasdaq 100 futures rose 16.25 points.

Both the Dow (.DJI) and Nasdaq (.IXIC) closed at levels not seen since 2008 on Wednesday, while the S&P 500 (.SPX) ended at a six-month high.

MSCI's all-country world stocks index was up 1.2 percent to two-year highs on Thursday and within reach of levels just before the collapse of Lehman Brothers.

Costco Wholesale Corp (COST.O), the largest U.S. warehouse club operator, said October sales jumped 6 percent, topping expectations on an increase in gasoline prices and strong foreign currency translations.

Liz Claiborne Inc (LIZ.N) reported a narrower third-quarter loss and forecast positive same-store sales in the fourth quarter. But the stock was down 3.9 percent at $5.99.

Kraft Foods Inc (KFT.N), North America's largest packaged food maker, is due to report quarterly results less than two months after it said it hopes to add $1 billion in additional revenue by 2013 after its purchase of Britain's Cadbury.

Other companies reporting include coffee chain Starbucks Corp (SBUX.O).

(Reporting by Angela Moon; Editing by Jeffrey Benkoe)


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Stock futures climb ahead of manufacturing report (AP)

NEW YORK – Stock futures rose Monday as traders were hopeful a report on manufacturing activity in the U.S. would mirror similar data from China that showed the sector expanded there last month.

Futures also climbed ahead of midterm elections and the Federal Reserve's meeting this week where the central bank is expected to announce a new economic stimulus program.

Economists polled by Thomson Reuters expect the Institute for Supply Management's manufacturing index slipped to 54 in October from 54.4 a month earlier. Even with the slight slowdown, any reading above 50 indicates the sector is expanding. Manufacturing has shown the most consistent growth during the year as a recovery remains sluggish.

A strong report on manufacturing out of China sent shares in that country sharply higher Monday. Growth accelerated in China as spending on infrastructure led to an increase in orders for new equipment.

Ahead of the opening bell, Dow Jones industrial average futures rose 49, or 0.4 percent, to 11,115. Standard & Poor's 500 index futures rose 6.50, or 0.6 percent, to 1,186.20, while Nasdaq 100 index futures rose 8.00, or 0.4 percent, to 2,130.00.

Hong Kong's Hang Seng index rose 2.4 percent, while the Shanghai Composite Index climbed 2.5 percent.

Any movement tied to Monday's manufacturing report could be fleeting though as traders quickly turn their attention to Tuesday's midterm elections and the Fed's meeting, which wraps up Wednesday.

Traders have been betting that Republicans will take control of at least the House of Representatives. That could slow President Barack Obama's agenda, which many analysts have said is not favorable to businesses.

Investors have also been assuming the Fed will launch a new Treasury-buying program to help stimulate the economy. Stocks rose for much of October because investors expect the Fed will announce as early as Wednesday that it plans to buy government debt to drive interest rates lower in an effort to spark spending and lending.

Only in the last few days has the market rally trailed off amid questions about exactly how much the Fed will spend to buy bonds. The Dow rose 3.1 percent in October, including a 0.1 percent drop last week.

Lower interest rates weaken returns on debt, which would make stocks and commodities more attractive investments since their potential return would be significantly higher.

Bond prices traded in a narrow range Monday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 2.60 percent compared with late Friday.


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Stock futures up on China data (Reuters)

NEW YORK (Reuters) – U.S. stock index futures rose on Monday, buoyed by strong Chinese manufacturing data as investors awaited a new batch of economic reports to kick off a week marked by mid-term elections and the U.S. Federal Reserve's monetary policy meeting.

Resource-related stocks were in focus as crude oil futures jumped 0.7 percent on expectation the Fed would add monetary stimulus this week and prompt further weakness in the dollar.

Commodity prices were boosted as Chinese manufacturing expanded at the fastest pace in six months in October. Key base metals prices also rose 1.3 to 1.9 percent.

The Institute for Supply Management releases its October manufacturing index at 10 a.m. EDT (1400 GMT). Economists in a Reuters survey expected a reading of 54.0 versus 54.4 in September.

Also at 10 a.m., the Commerce Department reports on September construction spending. Economists forecast a drop of 0.5 percent, compared with a 0.4 percent rise in the prior month.

The Fed looks likely to announce it will relaunch heavy bond buying after two days of meetings end on Wednesday. Most analysts expect the size and the scope of asset purchases to be about $100 billion a month, starting with a plan to buy $500 billion in bonds between now and early 2011.

In Tuesday's mid-term congressional elections, Republicans look set to take control of the U.S. House of Representatives, while Democrats are expected to retain control of the Senate, setting up the prospect of legislative gridlock.

"The election and the (Federal Open Market Committee)scenarios are priced in already, so it will be the economic data this week that will be changing peoples' expectations and China started that off (well), calming investors' nerves in light of China's attempt interest rates hikes ... more importantly, it is leading to weakness in the dollar that is obviously good for stocks," said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.

The dollar index (.DXY) dipped 0.2 percent.

U.S. stocks ended flat Friday, but wrapped up another strong month as hopes of a new round of quantitative easing have weakened the dollar while giving a boost to risky assets such as equities and commodities.

S&P 500 futures rose 5.5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 51 points, and Nasdaq 100 futures rose 7.25 points.

The Commerce Department will also release September personal income and consumption data at 8:30 a.m. (1230 GMT). Economists look for a rise of 0.2 percent in September income and a 0.4 percent increase in spending. In the previous month, income rose 0.5 percent and spending increased 0.4 percent.

Corning Inc (GLW.N) posted quarterly profit and revenue that missed estimates early Monday. The stock was down 3.1 percent at $17.71 in premarket trade.

Oilfield services company Baker Hughes Inc (BHI.N) reported a surge in quarterly profit that beat expectations. Baker Hughes edged up 0.2 percent at $46.50 premarket.

Simon Property Group Inc (SPG.N), the largest U.S. mall owner, said quarterly funds from operations fell after one-time charges.

U.S. chipmaker Intel Corp (INTC.O) has agreed to make chips for startup firm Achronix Semiconductor Corp, marking the first time Intel has given another company access to its most advanced production processes.

(Reporting by Angela Moon; editing by Jeffrey Benkoe)


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