Stock Futures Rise As European Anxiety Eases

Stock Futures Rise As European Anxiety Eases
News
Like Us On Facebook
Like Us On Facebook

U.S. stock futures followed the European markets higher Tuesday as Spanish yields, though still at elevated levels, eased after finance ministers reached an agreement on supporting Spain’s troubled banks.

Futures for the Dow Jones Industrial Average were rising 35 points, or 46.71 points above fair value, at 12,720. Futures for the S&P 500 were up by 2.3 points, or 4.14 points above fair value, at 1352. Futures for the Nasdaq 100 were up 6.5 points, or 8.09 points above fair value, at 2613.

“The Euro group has agreed to give Spain €30 billion, because you never know when €30billion might not come in handy,” noted Paul Donovan, global economist at UBS. “The route for the cash matters. Does Spain end up with the debt on its balance sheet, or is cash passed straight to the banks (retrospectively – initially the money is a government liability)?”

Italian yields were also falling while remaining at high levels amid some expectations that Germany’s top court will approve plans to try to more easily disburse eurozone rescue funds.

“The market is behaving like it is nervously expecting a big event,” said Jeff Kleintop, chief market strategist for LPL Financial. “The stock market has been jumpy with frequent reversals in direction.”

In other European news, the Office for National Statistics said that U.K. factory output increased 1.2% in May.

The FTSE in London was rising 0.85% and the DAX in Germany was up 1.3%. Hong Kong’s Hang Seng Stock index finished down 0.16% and the Nikkei in Japan closed lower by 0.44% after China reported weak trade data that pointed to more signs of a slowdown in the Asian economic powerhouse.

August crude oil futures were down 50 cents to $85.49 a barrel. August gold futures were up $4.60 to $1,593.70 an ounce.

The benchmark 10-year Treasury was down 5/32, raising the yield to 1.533%, while the dollar was rising 0.16%, according to the dollar index.

The benchmark U.S. stock indices retreated Monday amid nervousness about second-quarter reporting season and rising Spanish bond yields.

Aluminum giant Alcoa (AA) kicked off second-quarter earnings season, beating Wall Street estimates by a penny. Sales were $5.96 billion, topping the average analysts estimate of $5.81 billion, according to Thomson Reuters.

Shares of Alcoa ticked up 7 cents, or 0.8%, in premarket trading Tuesday to $8.83.

Investors at Research In Motion’s (RIMM) annual shareholders’ meeting Tuesday will be listening for details about the troubled BlackBerry maker’s long-term strategy.

RIM recently reported a worse-than-expected loss in its first quarter, announced 5,000 job cuts, and said it was delaying its long-awaited BlackBerry 10 technology.

RIM shares ticked up 5 cents, or 0.65%, in premarket trading Tuesday to $7.72.

Advanced Micro Devices (AMD) said it sees a sequential decrease in revenue of 11% for the second quarter, down from a prior forecast for growth of 3%.

The chipmaker cited slow growth in China and Europe as well as weak consumer demand for PCs for the weak outlook.

Shares of Advanced Micro Devices fell 10.14% in premarket trading Tuesday to $5.05.

Intel (INTC) announced Monday a series of deals totaling $4.1 billion with semiconductor manufacturing specialist ASML Holding (ASML) as the chipmaker looks to boost silicon manufacturing.

Intel will invest about $1 billion in ASML’s research and development over five years, and will eventually take a $3.1 billion, 15% stake in Netherlands-based ASML.

Elite.

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Julian Sonny

From the sandy beaches of Hawaii, to the streets of New York: Julian has seen it all. His lifetime of travels has given him a broad scope of knowledge and an eclectic taste unlike any other in the tri-state area. Julian has often been compared to cultural icon, The Rock, because of his unequivocal work ethic and warrior-like stature.

More In News

World Sean Levinson

So Much Yes: Drinking Beer Might Actually Be Good For Your Brain

A natural compound found in red wine, chocolate and, most importantly, beer, has been found to strengthen the brain. CNN reports that a team of researchers tested the flavonoid xanthohumol on both young and old mice by seeing how they performed in a maze. The first group was able to better navigate the maze’s obstacles […]

World Emily Arata

Scientists Are Getting Closer To Creating The Invisibility Cloak From ‘Harry Potter’ (Video)

University of Rochester scientists are working to make the world a little more magical with the help of advancements in cloaking technology. Just as Harry Potter sported his invisibility cloak, researchers are working to cloak visible objects. Using special lenses, the scientists are able hide hands, furniture and anything else that stays still long enough. […]

Also On Elite

Women

Woman Sends Powerful Message With Her Shirt Choice During Fashion Week (Photos)

Although Kanye West and many other celebrities are vocal about the ways cameras interrupt their lives, there’s something to say about the power of the media. At the height of New York Fashion Week, two people used their time in front of the camera to spread a message about racism. Shiona Turini, Cosmo’s Fashion Marketing […]

World

Be Careful Whose Hands You Shake: 25 Percent Of People Have Sh*t On Their Hands

Research suggests our hands are actually dirtier than most public surfaces: Over 25 percent of people likely host fecal matter on their hands! A recent study, completed by Aquiant, compared the number of bacteria on public surfaces to the amount on human hands. The study also surveyed the public on their germ habits. The researchers […]