U.S. stock-index futures rose, predicting the S&P 500 would turn to positive territory from yesterday’s drop, as investors focused on this week’s data on jobs and economic growth for signs on how long the Federal Reserve will maintain stimulus program.
Futures on the Standard & Poor’s 500 Index expiring in December gained 0.6% to 1,766.2 at 6:54 a.m. in New York. The benchmark index declined 0.3% yesterday as home-builder companies retreated. Dow Jones Industrial Average contracts increased 80 points, or 0.5%, to 15,630 today. Nasdaq added 0.4% to 3,391.50.
Until Friday’s non-farm payrolls data is delivered, investors will be focused on the ECB meeting scheduled for Thursday. Economists and strategists generally expect that some sort of easing measures will be announced by the central bank, though most are not expecting an interest rate cut at least not until December.
“The big story is the balance between data and QE (Quantitative Easing) expectations. Our view on that is really simple: QE tapering shouldnt be this important. We want to focus on fundamentals. If this rally continues for another 3% or 4% or 5%, we just don’t have the valuations or technicals to maintain our current position,” said for Wall Street Journal Sturkenboom, investment strategist at Russell Investment.
In corporate world, Tesla would most likely be on the move as company plunged 10% to $158.84 in early New York trading after saying it delivered about 5,500 of its Model S vehicles in the third quarter. Brian Johnson, an auto analyst at Barclays Plc, had expected 5,820.
Shares of Abercrombie & Fitch Co., the casual wear retailer, may also come under pressure after the retailer said same-store sales sank 14%.
Whole Foods Market Inc. is likely to report fiscal fourth-quarter earnings of 31 cents a share according to analysts. “Whole Foods remains well positioned to expand units, comparable stores sales and earnings at attractive rates capitalizing on the budding trends in health and wellness, in our view. While Whole Foods’ earnings power has consistently proven stronger than we had anticipated over the last several years, we believe the pace of upside will moderate,” Bob Summers, an analyst at Susquehanna, said in a report, cited by WSJ.
Activision Blizzard Inc., worlds second largest gaming company by revenue is expected to post earnings of 3 cents a share in the third quarter.
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