Tuesday May 10th

10-05-2016

US futures rise as investors eye earnings, oil

U.S. stock index futures pointed to a higher open on Tuesday,tracking European stocks higher, as sentiment was buoyed by corporate earnings. Dow futures briefly gained more than 100 points, before holding about 60 points higher. S&P and Nasdaq futures advanced 6 points and 11 points, respectively. Wall Street also kept an eye on oil prices, which held mostly higher in choppy trade. Investors also digested a rally in Japanese stocks as the yen fell lower Tuesday. This came as Japan's finance minister repeated that the country would intervene in the currency market if the rise in the yen continues and starts to hurt the country's economy. The Nikkei 225 closed up 349.16 points, or 2.15 percent, at 16,565.19. Across the Korean Strait, the Kospi finished higher by 14.69 points, or 0.75 percent, at 1,982.50. In Hong Kong, the Hang Seng index was up 0.09 percent as of 3:03 p.m. HK/SIN. Chinese mainland markets gave up morning gains, with the Shanghai composite closing near flat at 2,833.18, and the Shenzhen composite finishing down 2.07 points, or 0.11 percent, at 1,802.27. Back in the U.S., data due for release include wholesale trade and Job Openings and Labor Turnover Summary (JOLTS), both due at 10 a.m ET. The National Federation of Independent Business' small business optimism index rose for the first time this year, up 1.0 point from a two-year low in March to 93.6 in April, Reuters said. The figure remained below the 100 reading in December 2014 and its 42-year average of 98. Treasury yields held a touch higher in early morning trade. The U.S. dollar index was mildly higher, with the euro near $1.137 and the yen at 109.10 yen against the greenback as of 8:16 a.m. ET. After the bell on Tuesday, Disney reports earnings. In other earnings news, Credit Suisse swung to a net loss in the first quarter, although the numbers beat expectations. The stock was up over 5 percent in mid-morning trade in Europe. Solar City reported a wider than expected loss and cut its forecast for solar panel installations after Monday's close. The stock fell nearly 20 percent in after-hours trade. Meanwhile Invensense, which makes motion tracking sensors, posted a loss of $0.25 per share for the fourth quarter. Sotheby's swung to a first-quarter loss but said the second quarter is off to a strong start. The stock rose on the news. Bill Ackman's Pershing Square said it was seeking to sell $800 million in shares in Zoetis, the New York Times reported, citing sources. Oil rose on Tuesday, driven by supply disruptions in Canada and elsewhere that have knocked out 2.5 million barrels of daily production and temporarily eclipsed concern over high global inventories and a looming surplus of refined products. In spite of outages from Canada to Nigeria, oil prices are down by more than 2 percent so far this week, hampered by worries that even hefty dents to production will have little effect on the growth of stocks of unwanted crude. Brent crude futures were up 62 cents on the day at $44.25 per barrel by 8:23 a.m. ET (1223 GMT), while U.S. crude futures were up 18 cents at $43.62 per barrel, having recovered from a brief dip. Gold steadied just above a near two-week low on Tuesday, after its steepest loss since March in the prior session, but a steadier dollar curbed appetite for the precious metal. Bullion has fallen in five out of the past six sessions, failing to fully benefit from data last week showing that the U.S. economy added the fewest jobs in seven months in April. Spot gold was up 0.2 percent at $1,266.10 an ounce, after hitting an early low of $1,259.51, its weakest since April 28. Bullion fell 1.9 percent on Monday, its sharpest single-day drop since March 23. U.S. gold for June delivery was up 0.1 percent at $1,267.60 an ounce.