By Carla Mozee and Victor Reklaitis, MarketWatch
Dow futures had been down 60 points early
Dow futures had been down 60 points early
NEW YORK (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 42
points, or 0.3%, to 16,363 after having been down by more than 60
points earlier in premarket trade. Futures for the S&P 500
(SPU4) rose 8 points, or 0.4%, to 1,913, and those for the Nasdaq
100 (NDU4) tacked on 13 points, or 0.3%, to 3,870.
Stock futures appeared to get a boost after Russian news agency
RIA said Russia is seeking to de-escalate tensions with Ukraine. On
Thursday, Russian President Vladimir Putin had hit back with
sanctions against nations that placed restrictions on his
country.
But geopolitical tensions still loom. Separately, President
Barack Obama on Thursday authorized targeted airstrikes and
emergency-assistance missions in northern Iraq.
"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.
The RIA report saying that Russia intends to de-escalate
provided a knee-jerk reversal for markets looking for news in an
information void. The 10-year Treasury yield reversed some of its
fall.
"With limited coverage of Ukraine from news outlets now focusing
on the Middle East, traders are forced to jump at each headline,"
said Jim Vogel, executive vice president at FTN Financial Capital
Markets, in a note.
Peter Cardillo, chief market economist at Rockwell Global
Capital, said traders may have overreacted initially to the Iraq
airstrike news, with the action exacerbated by light summertime
trading. He noted the S&P 500 stayed above 1,900 on Thursday,
and it's managed to hold around the lower end of its trading range
for the week.
"There is an appetite for stocks around this level," Cardillo
told MarketWatch.
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 U.S. labor productivity in the
second quarter showed a 2.5% rise, beating the 1.7% gain expected
by economists polled by MarketWatch. U.S. stock futures largely
held their gains after the report. A fresh reading on wholesale
inventories is on deck for 10 a.m. Eastern Time, but that's not a
top-level economic report.
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. Shares were up 4% premarket.
Zynga shares (ZNGA) fell 8.9% 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 other markets, oil (CLU4) futures rose, and gold futures
(GCZ4) pulled back. European stocks remained lower but were off the
worst levels of the session.
Investors had sought safety in the Japanese yen (USDJPY), and
that push higher for the currency led to a 3% dive in Japanese
stocks.
More must-reads from MarketWatch:
NEED TO KNOW: Drop in stocks is following the presidential
cycle
Obama approves U.S. airstrikes in northern Iraq
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