By Barbara Kollmeyer and Al Lewis, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures jumped Tuesday,
tracking gains in Europe, as investors await durable-goods data and
hope for encouragement from the Federal Reserve this week.
Futures for the S&P 500 index (SPZ4) rose 10.3 points, or
0.5%, to 1,967.40, while those for the Dow industrials (DJZ4)
jumped 81 points, or 0.5%, to 16,839. Futures for the Nasdaq-100
(NDZ4)(NDZ4) popped 24.75 points, or 0.6%, to 4,063.
Those gains were in contrast to Monday, in which the S&P 500
index (SPX) closed down 0.2% and the other major indexes just eked
out gains. Energy stocks slid after Goldman Sachs slashed its
oil-price target. Read: What to make of this roller-coaster stock
market
Part of what going on Tuesday is that European markets, which
did poorly compared with U.S. counterparts on Monday, are playing
catch-up this morning, said Wouter Sturkenboom, strategist at
Russell Investments in London, in emailed comments. Stock futures
were going along for that ride.
Throw 'em a bone: "Also, markets are trading into the FOMC
statement later this week, expecting an end to quantitating easing,
but dovish wording (they basically expect the FOMC to throw them a
bone)," said Sturkenboom.
A decision after the two-day Federal Open Market Committee
meeting comes Wednesday. Before that, a small batch of data will
roll out Tuesday. At 8:30 a.m. Eastern Time, data for September are
expected to show new orders for durable goods, minus
transportation, may have risen close to 1%. Read: Businesses step
up investment. Will it last?
Markets may also be gaining on expectations for an improvement
in durable goods, Brenda Kelly, chief strategist at IG, said in
emailed comments.
At 9 a.m. Eastern Time, the S&P/Case-Shiller home price
index for August will be released, then the consumer confidence
index for October hits at 10 a.m. Eastern.
Stocks to watch: Aetna Inc. (AET) rose 1.8% in premarket after
lifting its outlook, as the insurer's results topped expectations.
Whirlpool Corp. (WHR) fell about 2.8% in premarket trade after
earnings per share missed expectations. DuPont (DD) posted a rise
in profit and backed its full-year outlook, though shares were flat
in premarket.Facebook Inc. (FB) will also report later.
Analysts at Nomura cut Twitter Inc. (TWTR) to neutral from buy
and shares fell 12% in premarket trading. The social-media company
disappointed investors after its fourth-quarter revenue forecast
came slightly under analysts' expectations, and growth in new users
slowed in the third quarter. Read a live-blog recap
Apple Inc. (AAPL) could grab some attention, after Alibaba Group
Holding Ltd.'s (BABA) chief executive officer Jack Ma said he was
interested in cooperating with the iPhone maker on financial
payments. Ma was speaking during an interview at the WSJD
Liveglobal technology conference in California late Monday.
Also at that conference, Apple CEO Tim Cook played down reports
of retailers such as Rite Aid Corp. (RAD) not accepting Apple Pay
at stores. He said more than one million cards were activated on
Apple Pay within 72 hours of its debut last week, making it the
largest mobile-payment offering.
Madison Square Garden Co.(MSGNV) said late Monday that it was
exploring the possibility of splitting into two publicly traded
companies to unlock value in its sports franchises.
Other markets: European stocks were on the rebound Tuesday, with
the German DAX 30 index up 1.3%. Stocks in China surged, with the
Hong Kong Hang Seng Index up 1.6%. Oil prices (CLZ4) were taking a
breather after a sharp drop on Monday. Gold prices (GCZ4) were
lackluster, as was the dollar (DXY).
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