By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures jumped Tuesday,
following gains in Europe. Investors are awaiting durable-goods
data and hoping for encouragement out of the Federal Reserve
meetings set for 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 80 points, or 0.5%, to 16,835. Futures for the Nasdaq-100
(NDZ4)(NDZ4) popped 23.25 points, or 0.6%, to 4,061.50.
Those gains were in contrast to Monday, in which the S&P 500
index (SPX) closed down 0.2% and the other major indexes barely
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 the narrative driving U.S. trading was the fact 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. U.S. stock futures were going along for that
ride.
Throw 'em a bone: "Also, markets are trading into the [Federal
Open Market Committee] 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 FOMC 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 that 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.
Pfizer Inc. (PFE) shares rose 2% in premarket after earnings and
sales beat expectations.
Facebook Inc.(FB) will report later Tuesday.
Twitter Inc.(TWTR) was hit by downgrades from several analysts
on Tuesday, leading shares to drop 14% 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. Shares rose 13%
in premarket.
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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