MARKET SNAPSHOT: Dow Futures Up Triple Digits As Market Eyes Third Day Of Gains
Source: Dow Jones News
By Victor Reklaitis, MarketWatch
Investors focus on Yum, CSX, Supervalu
U.S. stock futures on Wednesday pointed to a higher open, putting the market on track to rally for a third straight day and recover a little more from its worst five-day start to a year ever.
S&P 500 futures advanced by 14.35 points, or 0.8%, to 1,939.25, and Dow futures rose by 109 points, or 0.7%, to 16,472. Nasdaq 100 futures stepped up by 33.75 points, or 0.8%, to 4,346.50.
Investors appeared to shrug off another slump by Chinese stocks, as oil futures rallied (http://www.marketwatch.com/story/oil-prices-climb-back-from-fresh-12-year-low-under-30-ahead-of-inventory-data-2016-01-13). Shares in Yum Brands Inc. rose in premarket action after a rise in the KFC parent's December sales in China, while CSX Corp. and Supervalu Inc. were poised for active trading due to their quarterly earnings.
On Tuesday, the S&P 500 closed 0.8% higher (http://www.marketwatch.com/story/us-stock-futures-rise-as-market-tries-to-stabilize-after-awful-start-to-year-2016-01-12), and the Dow gained 118 points, as each benchmark rose for a second day in a row and pared its year-to-date loss to 5.2%. The Nasdaq added 1%, halting an eight-session skid and leaving the tech-heavy index down 6.4% in 2016.
Market bears have roared in the new year, with Société Générale permabear Albert Edwards predicting (http://www.marketwatch.com/story/socgen-perma-bear-albert-edwards-sees-sp-plunging-65-2016-01-12) the S&P will undercut its 2009 low of 666. Other analysts have called on investors to stay the course and think long term.
"I think that once we get some stabilization in oil markets and in Chinese growth data -- both expected this year -- we'll see increases in both consumer demand and production. That should also result in higher asset prices," said Jim Kee, president and chief economist at South Texas Money Management, in a note.
"In the meantime, it is not a market for broad indexes but rather for those with investment focus, specifically, with the ability to take gains in appreciated stocks and to put money to work in opportunities created by the current selloff," he added.
Other markets: Most Asian markets finished higher on Wednesday, but China's Shanghai Composite slumped 2.4%, closing below 3,000 for the first time since August (http://www.marketwatch.com/story/asian-markets-rise-on-better-than-expected-china-exports-2016-01-12). It's now less than 23 points off its summer low, hit on Aug. 26. European stocks and oil futures traded higher, while gold futures dropped. A key dollar index inched up.
Individual movers: CSX Corp. (CSX) late Tuesday delivered earnings that beat forecasts, but weaker-than-anticipated revenue (http://www.marketwatch.com/story/csx-revenue-falls-13-as-coal-shipments-decline-2016-01-12-18485624), while Supervalu Inc. (SVU) is expected to post results before the open.
Yum Brands Inc. (YUM) rose in thin premarket action after the KFC parent said late Tuesday that same-store sales gained last month in China (http://www.marketwatch.com/story/yum-shares-rise-after-china-same-store-sales-gain-2016-01-12). Stryker Corp. (SYK) also may move higher after hiking its profit outlook (http://www.marketwatch.com/story/stryker-raises-earnings-guidance-2016-01-12-18485758).
Economic news: Investors at 2 p.m. Eastern Time are due to take in the Federal Reserve's Beige Book report, which features anecdotal evidence on economic conditions.
Boston Fed President Eric Rosengren is expected to speak in Boston on the economic outlook at 7:45 a.m. Eastern, while Chicago Fed President Charles Evans is slated to give an economic forecast in Cedar Rapids, Iowa, at 1 p.m.
(END) Dow Jones Newswires
January 13, 2016 06:05 ET (11:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Source: Dow Jones News
By Victor Reklaitis, MarketWatch
Investors focus on Yum, CSX, Supervalu
U.S. stock futures on Wednesday pointed to a higher open, putting the market on track to rally for a third straight day and recover a little more from its worst five-day start to a year ever.
S&P 500 futures advanced by 14.35 points, or 0.8%, to 1,939.25, and Dow futures rose by 109 points, or 0.7%, to 16,472. Nasdaq 100 futures stepped up by 33.75 points, or 0.8%, to 4,346.50.
Investors appeared to shrug off another slump by Chinese stocks, as oil futures rallied (http://www.marketwatch.com/story/oil-prices-climb-back-from-fresh-12-year-low-under-30-ahead-of-inventory-data-2016-01-13). Shares in Yum Brands Inc. rose in premarket action after a rise in the KFC parent's December sales in China, while CSX Corp. and Supervalu Inc. were poised for active trading due to their quarterly earnings.
On Tuesday, the S&P 500 closed 0.8% higher (http://www.marketwatch.com/story/us-stock-futures-rise-as-market-tries-to-stabilize-after-awful-start-to-year-2016-01-12), and the Dow gained 118 points, as each benchmark rose for a second day in a row and pared its year-to-date loss to 5.2%. The Nasdaq added 1%, halting an eight-session skid and leaving the tech-heavy index down 6.4% in 2016.
Market bears have roared in the new year, with Société Générale permabear Albert Edwards predicting (http://www.marketwatch.com/story/socgen-perma-bear-albert-edwards-sees-sp-plunging-65-2016-01-12) the S&P will undercut its 2009 low of 666. Other analysts have called on investors to stay the course and think long term.
"I think that once we get some stabilization in oil markets and in Chinese growth data -- both expected this year -- we'll see increases in both consumer demand and production. That should also result in higher asset prices," said Jim Kee, president and chief economist at South Texas Money Management, in a note.
"In the meantime, it is not a market for broad indexes but rather for those with investment focus, specifically, with the ability to take gains in appreciated stocks and to put money to work in opportunities created by the current selloff," he added.
Other markets: Most Asian markets finished higher on Wednesday, but China's Shanghai Composite slumped 2.4%, closing below 3,000 for the first time since August (http://www.marketwatch.com/story/asian-markets-rise-on-better-than-expected-china-exports-2016-01-12). It's now less than 23 points off its summer low, hit on Aug. 26. European stocks and oil futures traded higher, while gold futures dropped. A key dollar index inched up.
Individual movers: CSX Corp. (CSX) late Tuesday delivered earnings that beat forecasts, but weaker-than-anticipated revenue (http://www.marketwatch.com/story/csx-revenue-falls-13-as-coal-shipments-decline-2016-01-12-18485624), while Supervalu Inc. (SVU) is expected to post results before the open.
Yum Brands Inc. (YUM) rose in thin premarket action after the KFC parent said late Tuesday that same-store sales gained last month in China (http://www.marketwatch.com/story/yum-shares-rise-after-china-same-store-sales-gain-2016-01-12). Stryker Corp. (SYK) also may move higher after hiking its profit outlook (http://www.marketwatch.com/story/stryker-raises-earnings-guidance-2016-01-12-18485758).
Economic news: Investors at 2 p.m. Eastern Time are due to take in the Federal Reserve's Beige Book report, which features anecdotal evidence on economic conditions.
Boston Fed President Eric Rosengren is expected to speak in Boston on the economic outlook at 7:45 a.m. Eastern, while Chicago Fed President Charles Evans is slated to give an economic forecast in Cedar Rapids, Iowa, at 1 p.m.
(END) Dow Jones Newswires
January 13, 2016 06:05 ET (11:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
