By Carla Mozee, MarketWatch
Dow futures had been down 60 points early
Dow futures had been down 60 points early
LONDON (MarketWatch) -- Wall Street was fighting for a higher
open Friday, with U.S. stock futures reversing course and gaining
following a report that Russia is looking to dial down its conflict
with Ukraine.
Futures for the Dow Jones Industrial Average (DJU4) moved up 15
points, or 0.1%, to 16,337. after having been down by more than 60
points earlier in premarket trade. Futures for the S&P 500
index (SPU4) rose 3.5 points, or 0.2%, to 1,908.70, and those for
the Nasdaq 100 index (NDU4) tacked on 6.3 points, or 0.2%, to
3,863.
Stocks appeared to get a boost after Russian news agency RIA
said Russia is seeking to de-escalate tensions with Ukraine. Russia
and the West have been tussling over the Kremlin's support of
separatist forces in Ukraine, leading to sanctions against Russian
entities. Russian President Vladimir Putin on Thursday hit back on
sanctions against countries that placed restrictions on his
country.
But geopolitical tensions still loom as investors await details
from the Kremlin. Separately, U.S. President Barack Obama on
Thursday authorized targeted airstrikes and emergency-assistance
missions in northern Iraq. Obama said the U.S. must protect
American personnel and prevent a humanitarian catastrophe against
violent Islamist forces.
"It all points towards a quick retreat out of the safe havens
that traders flocked to overnight, but it's worth remembering that
this is August, volumes are going to be a bit depressed and this
could well be exaggerating the volatility," said João Monteiro,
analyst at Valutrades, in emailed comments.
Investors had sought safety in the Japanese yen (USDJPY), and
that push higher for the currency led to a 3% dive in Japanese
stocks.
In the Middle East, Israel said Hamas had violated a 72-hour
cease-fire and ordered the military to resume fire in the Gaza
Strip.
Productivity, stocks to watch
On the data front, a report on labor market productivity in the
second quarter is scheduled for an 8:30 a.m. Eastern Time release.
Productivity at U.S. businesses is likely to modestly rebound after
a sharp decline in the first three months of the year. Economists
polled by MarketWatch expect the Labor Department to report a 1.7%
gain in productivity.
A report on wholesale inventories in June is on deck for 10 a.m.
Eastern Time from the Commerce Department. Inventories in May rose
by 0.5%.
Stocks that may be active on Friday include Gap (GPS) after the
apparel retailer's same-store sales increased 2% in July, beating
analysts' expectations of a 0.1% rise.
Zynga shares (ZNGA) fell 7.5% in premarket trade after the
online social-gaming company late Thursday said its second-quarter
loss widened to $62.5 million, or 7 cents a share. (Read more about
notable stock moves here:
http://www.marketwatch.com/story/zynga-plummets-tesla-falls-short-of-record-2014-08-07.)
In the commodities market, oil (CLU4) futures rose above $98 a
barrel, and gold futures (GCZ4) pared gains to about $4 an
ounce.
European stocks remained lower but were off the worst levels of
the session.
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