Tuesday July 12th

12-07-2016

Stocks seen higher as rally endures

U.S. stock index futures pointed to a higher open on Wall Street Tuesday, building on Monday's extended jobs report-fueled rally when the S&P 500 closed at an all-time high and the Dow hit 2016 highs. On Friday, the Bureau of Labor Statistics reported the U.S. economy added 287,000 jobs, easily beating expectations. On the agenda on Tuesday is the June NFIB survey, out at 6 a.m. ET. Wholesale trade data for May will be released at 10 a.m. ET, alongside job openings and labor turnover survey (JOLTS). The International Monetary Fund will then release its latest report on the U.S. economy at 10:00 a.m. ET. A number of Federal Reserve speeches are scheduled, including Governor Daniel Tarulla at 9:15 a.m. ET, St. Louis Fed President James Bullard at 9:35 a.m. ET, Minneapolis Fed President Neel Kashkari from 6:30 p.m. ET, and Cleveland Fed President Loretta Mester at 10:30 p.m. ET. Former Federal Reserve chair Ben Bernanke met with Japanese Prime Minister Shinzo Abe earlier on Tuesday to exchange views on economic policy. Asian markets finished higher on Tuesday, with the Nikkei extending a banner rally as stimulus comments made by Japanese Prime Minister Shinzo Abe late on Monday helped to weaken the yen. The Nikkei 225 closed 2.46 percent, or 386.83 points higher, at 16,095.65 and the Topix finished up 2.38 percent, or 29.94 points, at 1,285.73, after both indexes tacked on nearly 4 percent each on Monday. In other Asian markets, the Hang Seng Index added 1.65 percent, or 344.24 points, to finish at On the mainland, the Shanghai Composite closed up 1.83 percent, or 54.765 points, at 3,049.68, while the Shenzhen composite finished 1.2 percent, 24.04 points, at 2,025.02 after falling into negative territory earlier. In South Korea, the Kospi closed up 0.14 percent, or 2.69 points, at 1,991.23. Crude futures on Tuesday bounced back from two-month lows, helped by a weaker dollar, but an oil inventory glut and a drop in bullish bets by investors weighed on prices. Brent crude was up $1.29 at $47.54 per barrel. U.S. West Texas Intermediate (WTI) crude was up $1.10 at $45.86 a barrel. Gold edged lower on Tuesday as global equities rallied on easing political uncertainty in Britain and hopes for more economic stimulus measures, which in turn curbed demand for assets perceived as a haven. Spot gold was down 0.2 percent at $1,352.06 an ounce was its biggest decline in almost two weeks, U.S. gold was down 0.1 percent at $1,355.30 an ounce.