US stocks: Dow futures rise, adding to Fed-fueled 248-point gain
New York (Nov 19) US stocks early Thursday looked set to rise at the opening bell, building on Wednesday’s jump that was sparked by the Federal Reserve signaling confidence in the economy.
Investors will take in Square Inc. SQ, +0.00% and Match Group Inc.’s MTCH, +0.00% trading debuts, as well as earnings from companies such as Best Buy Co. BBY, -9.35% and J.M. Smucker Co. SJM, +1.13%
Dow Jones Industrial Average futures YMZ5, +0.10% added 72 points, or 0.4%, to 17,761, while S&P 500 futures ESZ5, +0.22% tacked on 7.80 points, or 0.4%, to 2,087.50. Nasdaq 100 futures NQZ5, +0.32% rose by 16.75 points, or 0.4%, to 4,669.
On Wednesday, the Dow DJIA, +1.42% advanced by 248 points, or 1.4%, and the S&P SPX, +1.62% climbed 1.6%. Most of the gains came after minutes from the Federal Reserve’s last meeting showed policy makers increasingly think the U.S. economy is strong enough to handle an interest-rate rise next month. The Dow is down 0.5% this year as of Wednesday’s close, while the S&P is up 1.2%.
The consensus is Fed officials “have teased and toyed with the market long enough. So if a degree of credibility is to be maintained, it would be best for all if rates went up a quarter,” said David Buik, market commentator at Panmure Gordon & Co., in a note Thursday. Traders “seemed happy with the Fed’s gobbledygook,” he added.
Other markets: European equities SXXP, +0.89% were on the rise as investors tracked news about raids in Brussels tied to last Friday’s terrorist attacks in Paris. Asian stocks ADOW, +1.68% closed higher, and China’s central bank cut lending ratings, with that move coming late in the day there.
Oil futures CLZ5, -1.40% and gold futures GCZ5, +0.24% were both higher, while a key dollar index DXY, -0.26% was lower, adding to Wednesday’s drop, which was attributed to the Fed minutes not being hawkish enough. The dollar index is still up 2.5% so far this month.
Movers: The S&P 500’s big advancers in premarket action include Keurig Green Mountain Inc. GMCR, +0.92% Salesforce.com Inc. CRM, +0.14% and Allergan PLC AGN, -1.53%
Keurig Green Mountain shares are up 19% in thin premarket trading after the single-serve coffee pioneer reported adjusted quarterly earnings late Wednesday that fell far less than expected. Software services provider Salesforce late Wednesday also delivered profit that topped forecasts.
Allergan AGN, -1.53% is up 2.6% following news that Pfizer Inc. PFE, +1.34% could be close to buying out the drug company.
Square Inc. SQ, +0.00% is due to begin trading Thursday on the New York Stock Exchange using the ticker SQ. Late Wednesday, the mobile-payments startup priced its IPO at $9 a share, below the targeted range of $11 to $13.
Read: Square IPO pricing is a warning to ‘unicorn’ startups
Match Group Inc. MTCH, +0.00% shares are slated to start changing hands on the Nasdaq exchange under the ticker MTCH. Late Wednesday, the online dating company priced its IPO at $12 a share, at the low end of its projected range.
Among companies slated to report earnings before the opening bell are Best Buy Co. BBY, -9.35% J.M. Smucker Co. SJM, +1.13% and Dollar Tree Inc. DLTR, +3.74%
After the bell, Gap Inc. GPS, +1.36% Intuit Inc. INTU, +0.20% and Fresh Market Inc. TFM, +0.74% are among those posting results.
Economic news: Reports on weekly jobless claims and the Philadelphia region’s business conditions reading for November are due at 8:30 a.m. Eastern Time.
Check out: MarketWatch’s Economic Calendar
In terms of fresh talk by central bankers, Atlanta Fed President Dennis Lockhart is due to speak about the U.S. economy at 12:30 p.m. Eastern Time, addressing the DeKalb Chamber of Commerce in the Atlanta area. Fed Vice Chairman Stanley Fischer will speak in San Francisco about Asia’s transitions, starting at 4:45 p.m. Eastern.
Source: MarketWatch
