By Carla Mozee, MarketWatch OPEC meeting in focus this week
LONDON (MarketWatch) -- U.S. stock futures advanced Monday in a
holiday-shortened week, suggesting Wall Street is ready to build on
its multi-week run of gains.
Futures for the Dow Jones Industrial Average (DJZ4) rose 34
points, or 0.2%, to 17,814 and those for the S&P 500 index
(SPZ4) tacked on 4 points, or 0.2%, to 2,065.60. Futures for the
Nasdaq 100 (NDZ4) climbed 11 points, or 0.2%, to 4,259.25.
The economic calendar is light with just the Chicago Fed
national activity index due at 8:30 a.m. Eastern Time. But later in
the week, which will be interrupted by the Thanksgiving Day
holiday, investors will receive a stack of updates on housing,
inflation and a revision in third-quarter gross domestic product
for the U.S.
U.S. stocks ended Friday's session higher guided by gains in the
materials sector after China moved to bolster its economy by
cutting interest rates. The S&P 500 (SPX) closed up 0.5% higher
and ended the week up by 1.2%.The Dow Jones Industrial Average
(DJI)(DJI) rose 1% for the week and the Nasdaq Composite (RIXF)
added 0.5%.
Need to know: Relax, stocks will only rise 5% next year
OPEC spotlight: Energy stocks also rose ahead of Thursday's
meeting of the Organization of Petroleum Exporting Countries, where
members are facing calls to cut production to help stem the recent
slide in crude-oil prices. Ahead of Wall Street's open, light,
sweet crude futures for January delivery (CLF5) were up 15 cents,
or 0.2%, to $76.64 a barrel.
"Plenty of headwinds to OPEC action remain, but we see greater
prospects for either a stronger enforcement of the quota or an
outright cut of the quota," said Morgan Stanley commodity analysts
led by Adam Longson, in a Monday note.
A rising likelihood that a Monday deadline on an agreement to
curb Iran's nuclear program will be extended may factor into
decisions at OPEC, "but even last week, Libya called for stronger
enforcement of the existing 30 mmb/d quota, and most oil exporters
are calling for at least some action to settle oil markets," said
Morgan Stanley.
Stocks to watch:Tesla (TSLA) is in talks with German automaker
BMW about working together to develop batteries and collaborate
over light-weight parts, Tesla's Chief Executive Elon Musk told
German weekly Der Spiegel.
Trina Solar Ltd. (TSL) posted a flat profit on revenue growth of
13%.
Other markets: European stocks got a bang out of the Germany's
IFO business-climate survey, and the Hang Seng and Shanghai
Composite indexes each leapt nearly 2% in a first chance to react
to China's rate cuts. Read Craig Stephen's column on whether
investors should buy into China's rate-move.
Gold futures (GCZ4) fell nearly $3 an ounce, and the
dollar(USDJPY) topped Yen118.
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