Friday, November 4, 2011
Stock index futures point to mixed start
On Friday November 4,
2011, 6:41 am EDT
NEW YORK (Reuters) - Stock index futures pointed to a mixed open on Wall Street, with futures for the S&P 500 flat, Dow Jones futures up 0.1 percent and Nasdaq 100 futures down 0.2 percent at 1008 GMT (6:08 a.m. EDT).
The main focus will be on U.S. non-farm payrolls, the latest piece of data to show how the United States is growing, with private employers expected to add 120,000 jobs last month, while the unemployment rate is seen unchanged at 9.1 percent.
Corporate news is another focus, insurer American International Group third-quarter results missed expectations following an impairment charge in its aircraft leasing unit.
Starbucks Corp's quarterly profit beat expectations following strong global sales at cafes.
Acquisition news will also be in the spotlight, a sale is expected to be agreed by the end of the weekend of MF Global's operations in Asia and Australia after the provisional liquidator for the brokerage's Hong Kong received nearly 40 credible offers.
Separately, MF Global may have temporarily slashed the debt it was carrying before publicly reporting its finances each quarter, disguising its debt levels to investors, according to an analysis by the Wall Street Journal.
PepsiCo Inc beverage subsidiary in China is being sold in China to an unlisted unit of instant noodle and drinks maker Tingyi Holdings Corp, a source with direct knowledge of the matter said.
Groupon Inc has raised $700 million in an initial public offering, making it the largest IPO by an Internet company since Google in 2004.
Banks will also be in the spotlight, the Wall Street Journal reported, citing people familiar with the matter, that the Bank of New York Mellon Corp is in talks with federal prosecutors over a currency lawsuit which accuses the bank of overcharging clients.
The White House said U.S. banks exposure to the euro zone crisis is modest and the United States can cope if the region's debt crisis grows worse as worries intensify about Greece.
European shares rose on Friday on hopes a proposed referendum in Greece on a new bailout package which could threaten its membership in the euros would be avoided, easing concerns about a Greek default.
U.S. stocks rallied on Thursday, also on hopes the referendum would be called off, with the Dow Jones industrial average was up 1.8 percent, the Standard & Poor's 500 Index gained 1.9 percent and the Nasdaq Composite Index rose 2.2 percent.
The market (YM) is on the idle level at this time from the Globex market as shown from this 5-min. chart.
A Friday profit taking trading today.
It might trade on the sideways as far I can sense unless there is a positive/favorable news out there that will send the market to the bullish trend.
Let's see how it goes in the regular open.
A Friday profit taking trading today.
It might trade on the sideways as far I can sense unless there is a positive/favorable news out there that will send the market to the bullish trend.
Let's see how it goes in the regular open.
Thursday, November 3, 2011
U.S. Stock-Index Futures Advance on Speculation Greece Will Call Off Vote
U.S. stock futures climbed, erasing an earlier slide, amid speculation Greece will call off a planned referendum on its latest bailout after the euro area’s leaders suspended the country’s next aid payment.
Standard & Poor’s 500 Index contracts expiring in December added 0.4 percent to 1,238.8 at 6:46 a.m. in New York, erasing earlier losses of as much as 1.7 percent. Futures on the Dow Jones Industrial Average expiring the same month rose 45 points, or 0.4 percent, to 11,813.
“Markets have pared losses on hopes that a referendum will not occur,” said Ioan Smith, a director at Knight Capital Europe Ltd. in London. “I don’t think the market is too focused on Germany and France pulling aid, the main focus is on the referendum and Greece’s political situation.”
Prime Minister George Papandreou’s ruling Pasok party has split over his pledge to call a referendum on the country’s bailout package before a confidence vote in parliament tomorrow that may determine his survival.
Finance Minister Evangelos Venizelos led lawmakers opposed to Papandreou’s decision to put the package to a vote of the Greek people after German Chancellor Angela Merkel warned that the referendum amounted to a plebiscite on Greece’s membership of the euro. Papandreou is holding a cabinet meeting at midday in Athens, according to a statement from the premier’s office.
The S&P 500 has retreated 3.7 percent so far this week after Greece called a surprise referendum, spurring concern that the country will default. Germany and France said late yesterday they will withhold 8 billion euros ($11 billion) of funding, warning the Greek people that they will lose all European aid if they vote against last week’s bailout package.
The S&P 500 yesterday rose 1.6 percent after the Federal Reserve said additional purchases of mortgage-backed securities are a “viable option” if the economy requires further easing. The Federal Open Market Committee left the benchmark interest rate unchanged, saying economic growth strengthened while“significant downside risks” remain.
“From a U.S. domestic point of view, things are starting to settle down,” said Nick Skiming a U.S. fund manager at Ashburton Ltd. which oversees about $2 billion in Jersey, theChannel Islands. “But as long as the Greece problem continues, it’s going to infect and impact on all global markets.”
The Institute for Supply Management’s non-manufacturing index rose to 53.5 from 53 in September, according to the average economist estimate in Bloomberg News survey. Readings above 50 signal expansion. Other figures today may show a rebound in productivity and a decline in jobless claims.
Tomorrow’s Labor Department release may show U.S. non-farm payrolls increased 95,000 in October, fewer than the 103,000 jobs added in September, according to economists.
Standard & Poor’s 500 Index contracts expiring in December added 0.4 percent to 1,238.8 at 6:46 a.m. in New York, erasing earlier losses of as much as 1.7 percent. Futures on the Dow Jones Industrial Average expiring the same month rose 45 points, or 0.4 percent, to 11,813.
“Markets have pared losses on hopes that a referendum will not occur,” said Ioan Smith, a director at Knight Capital Europe Ltd. in London. “I don’t think the market is too focused on Germany and France pulling aid, the main focus is on the referendum and Greece’s political situation.”
Prime Minister George Papandreou’s ruling Pasok party has split over his pledge to call a referendum on the country’s bailout package before a confidence vote in parliament tomorrow that may determine his survival.
Finance Minister Evangelos Venizelos led lawmakers opposed to Papandreou’s decision to put the package to a vote of the Greek people after German Chancellor Angela Merkel warned that the referendum amounted to a plebiscite on Greece’s membership of the euro. Papandreou is holding a cabinet meeting at midday in Athens, according to a statement from the premier’s office.
The S&P 500 has retreated 3.7 percent so far this week after Greece called a surprise referendum, spurring concern that the country will default. Germany and France said late yesterday they will withhold 8 billion euros ($11 billion) of funding, warning the Greek people that they will lose all European aid if they vote against last week’s bailout package.
Greece’s Referendum
“The referendum will revolve around nothing less than the question: does Greece want to stay in the euro, yes or no?”Merkel told reporters after crisis talks in Cannes, France. French President Nicolas Sarkozy said Papandreou’s government won’t get a “single cent” of assistance if voters reject the plan. A Group of 20 summit begins in Cannes today.The S&P 500 yesterday rose 1.6 percent after the Federal Reserve said additional purchases of mortgage-backed securities are a “viable option” if the economy requires further easing. The Federal Open Market Committee left the benchmark interest rate unchanged, saying economic growth strengthened while“significant downside risks” remain.
“From a U.S. domestic point of view, things are starting to settle down,” said Nick Skiming a U.S. fund manager at Ashburton Ltd. which oversees about $2 billion in Jersey, theChannel Islands. “But as long as the Greece problem continues, it’s going to infect and impact on all global markets.”
Non-Manufacturing Index
A report due at 10 a.m. New York time may show that U.S. service industries grew at a faster pace in October, indicating the biggest part of the economy is holding up, economists said.The Institute for Supply Management’s non-manufacturing index rose to 53.5 from 53 in September, according to the average economist estimate in Bloomberg News survey. Readings above 50 signal expansion. Other figures today may show a rebound in productivity and a decline in jobless claims.
Tomorrow’s Labor Department release may show U.S. non-farm payrolls increased 95,000 in October, fewer than the 103,000 jobs added in September, according to economists.
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