MARKET SNAPSHOT: U.S. Stock Futures Rise, Putting Dow On Pace To Recover
May 24 2016 - 9:21AM
Dow Jones News
By Anora Mahmudova and Victor Reklaitis, MarketWatch
Best Buy, Toll Brothers and new-home sales grab the
spotlight
U.S. stock futures were trading higher on Tuesday, pointing to a
positive session on Wall Street as investors digested a number of
earnings reports.
A fresh reading on new-home sales is due just after the opening
bell, while home builder Toll Brothers Inc.(TOL) and electronics
retailer Best Buy Co.(BBY) rose and fell, respectively, after
posting earnings ahead of the bell.
S&P 500 futures gained 11 points, or 0.5%, to 2,056, while
Dow Jones Industrial Average futures rose by 100 points, or 0.6%,
to 17,568. Nasdaq-100 futures tacked on 27 points, or 0.6%, to
4,380.
On Monday, the S&P 500 closed 0.2% lower
(http://www.marketwatch.com/story/wall-street-set-to-pause-with-fed-speakers-on-deck-2016-05-23),
while the Dow and Nasdaq Composite both shed 0.1%, as Federal
Reserve officials continued to signal that U.S. interest rates
could rise as soon as next month.
"Investors are very much in wait-and-see mode right now with the
next month bringing two very notable risk events, the EU referendum
in the U.K. and a possible rate hike from the Fed," said Craig
Erlam, Oanda's senior market analyst, in a note Tuesday.
"Investors have been in denial about the potential for a summer
rate hike for most of this year, but appear to be coming around to
the idea," he added.
The market sees a 30% chance of a June hike and a 46% chance of
a July move, according to the CME Group's FedWatch tool
(http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html).
Other markets:Oil futures
(http://www.marketwatch.com/story/oil-prices-stay-in-the-doldrums-on-supply-growth-concerns-2016-05-24)
traded flat to lower, limited by supply worries as production
disruptions around the world wind down. European stocks
(http://www.marketwatch.com/story/european-stocks-turn-higher-led-by-gains-for-banks-2016-05-24)
advanced, led by gains for banks. Asian markets closed mostly down
(http://www.marketwatch.com/story/asia-stocks-retreat-on-weak-commodity-prices-uncertainty-over-fed-moves-2016-05-24),
with blame going to weak commodity prices and uncertainty over the
timing of the next U.S. interest-rate increase. Gold futures lost
ground, and the ICE U.S. Dollar Index moved up.
Check out: This financial sector's boom in China could end with
a bust
(http://www.marketwatch.com/story/the-latest-scary-china-chart-this-financial-sectors-boom-could-end-with-a-bust-2016-05-24)
Economic news: An April figure for new-home sales is slated to
hit at 10 a.m. Eastern Time, with economists polled by MarketWatch
forecasting a reading of 523,000.
Company news: Ahead of the open, Toll Brothers posted quarterly
profit and revenue that topped expectations
(http://www.marketwatch.com/story/toll-brothers-profit-jumps-in-second-quarter-beating-views-2016-05-24).
Shares gained in premarket trading.
Best Buy's quarterly results beat forecasts, but the company's
guidance disappointed
(http://www.marketwatch.com/story/best-buy-shares-sink-after-weak-guidance-2016-05-24)
and shares fell premarket.
Shares of Kohl's Corp. (KSS) jumped 4% after a video of a woman
who bought Chewbacca mask at the store went viral, getting more
than 140 million views on Facebook.
Shares of Under Armour jumped 7% in thin premarket trading.
Apple Inc. (AAPL) shares gained premarket amid upbeat reports
(http://www.cnbc.com/2016/05/23/apple-shares-spike-amid-bullish-iphone-7-report-suppliers-follow.html)
on demand for new versions of the iPhone.
(END) Dow Jones Newswires
May 24, 2016 09:06 ET (13:06 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.