MARKET SNAPSHOT: U.S. Stock Futures Hint At Upbeat December Kickoff
01 December 2015 - 9:49PM
Dow Jones News
By Sara Sjolin, MarketWatch
Wall Street was set for kicking off December on an upbeat note
on Tuesday, with stock futures tracking a positive session in Asia
ahead of closely watched economic events this week that could
determine future U.S. monetary policy.
Futures for the Dow Jones Industrial Average rose 60 points, or
0.3%, to 17,774, while those for the S&P 500 index added 6.45
points, or 0.3%, to 2,086.25. Futures for the Nasdaq 100 index
climbed 14.25 points, or 0.3%, to 4,682.75.
The positive trading mood comes after U.S. stocks ended slightly
lower on Monday
(http://www.marketwatch.com/story/wall-street-eyes-cautious-start-to-week-of-central-bank-watching-2015-11-30),
trimming their monthly gains
"U.S. futures appear to be benefiting from a positive lead from
Asia after experiencing small losses at the start of the week. I
don't think we can read too much into these small moves and I think
they reflect a more cautious environment ahead of Thursday's
[European Central Bank] decision and Friday's jobs report," said
Craig Erlam, senior market analyst at Oanda, in emailed
comments.
"These are the key events this week and I think investors may
largely sit on the fence ahead of them. I think these minor gains
and losses are reflective of this," he added.
The nonfarm-payrolls report due on Friday is seen as an
important factor in determining the timing of the first U.S. rate
hike in nearly a decade, as it provides a health check on the U.S.
labor market. Read: Fed may need 4% unemployment rate to hit
inflation goal
(http://www.marketwatch.com/story/fed-may-need-4-unemployment-rate-to-hit-inflation-goal-2015-11-30)
Expectations that the Federal Reserve will hike interest rates
after its Dec. 15-16 meeting are already high after a string of
solid economic data in November. The notion that the central bank
is confident enough in the U.S. economy to start the tightening
cycle was also one of the factors that helped keep stock markets
afloat last month.
Data: Tuesday will offer a host of data that could weaken or
strengthen the case for a rate rise, including two releases on the
manufacturing sector. At 9:45 a.m. Eastern Time, the final
manufacturing purchasing managers index for November is due,
forecast to confirm the flash estimate of 52.6. That number was the
lowest in 25 months
(http://www.marketwatch.com/story/flash-us-manufacturing-pmi-slumps-to-25-month-low-in-november-2015-11-23).
At 10 a.m., the Institute for Supply Management's index of
manufacturing comes out, expected to rise to 50.5% in November from
50.1% in October
(http://www.marketwatch.com/story/us-manufacturers-still-struggling-ism-finds-2015-11-02).
Construction spending for October is also due at 10 a.m., while
monthly car sales drip out through the day.
Fed speakers: Chicago Fed President Charles Evans will give a
speech on the economy to the Lansing Regional Chamber of Commerce
at Michigan State University at 12:45 p.m. Eastern.
At 8 p.m. Eastern, Fed Gov. Lael Brainard will talk about the
"Lower Neutral Rate and its implications for Monetary Policy" at
Stanford Institute for Economic Policy Research Associates Meeting
in Stanford, Calif.
Movers and shakers: Shares of HF Financial Corp.(HFFC) could be
active after news late Monday that Great Western Bancorp Inc.(GWB)
will buy the company for $139.4 million.
Infoblox Inc.(BLOX) was poised for a positive trading day after
the network software company late Monday reported earnings that
topped analyst expectations
(http://www.marketwatch.com/story/infoblox-shares-rally-on-earnings-outlook-buyback-plan-2015-11-30).
Other markets: Asian stock markets closed broadly in positive
territory
(http://www.marketwatch.com/story/asian-shares-rise-on-hopes-for-stimulus-yuan-holds-steady-2015-12-01)
after a flurry of weak PMIs lifted hopes for more monetary
easing.
European equities seesawed, with investors reluctant to take any
major positions ahead of the ECB meeting on Thursday. Economists
widely expect the central bank to extend its quantitative easing
program and possibly move the deposit rate further into negative
territory.
Crude oil advanced to briefly trade above $42
(http://www.marketwatch.com/story/oil-prices-rise-as-opec-meeting-draws-closer-2015-12-01)
a barrel as the meeting of the Organization of the Petroleum
Exporting Countries meeting this Friday in Vienna drew closer.
Gold also rose, while the dollar slipped against most major
currencies
(http://www.marketwatch.com/story/yen-gains-on-reports-of-currency-hedging-by-japans-mega-pension-fund-2015-12-01).
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(END) Dow Jones Newswires
December 01, 2015 05:34 ET (10:34 GMT)
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