US stock futures waver in thin trade on Columbus Day
New York (Oct 12) US stocks were set for a slightly higher open in choppy trade on Monday, marginally extending solid gains from last week, after most Asian markets rallied on the back of more stimulus measures from Beijing.
Volumes for the session were expected to be thin, however, with most banks, federal institutions and U.S. bond markets closed for the Columbus Day holiday. That also means no major data releases are on tap for Monday.
Wavering around the flatline, futures for the Dow Jones Industrial Average YMZ5, +0.08% inched higher by 8 points, or 0.1%, to 16,999, setting the blue-chip gauge on track for a seventh straight day in positive territory. Futures for the S&P 500 index ESZ5, +0.00% gained 0.60 point, or less than 0.1%, to 2,008, while those for the Nasdaq 100 index NQZ5, +0.03% were flat around 4,359.25.
The small gains would build on a rally from last week when the S&P 500 SPX, +0.07% logged its best week of 2015 and Dow average DJIA, +0.20% scored its longest winning streak since December. The upbeat trading mood last week was spurred in part by a sharp rebound in commodity prices and expectations the Federal Reserve won’t raise interest rates before 2016.
On Monday, commodity prices continued to rise, with crude oil CLX5, +0.44% rising 0.2% and metals climbing almost across the board.
China easing: More easing measures from China also helped set a positive tone on Monday. The People’s Bank of China announced over the weekend that it will expand a pilot program aimed at boosting bank lending, a move interpreted as a version of quantitative easing.
“This is expected to provide additional liquidity in the market by facilitating bank lending,” said Peter Ward, senior sales trader at London Capital Group, in a note.
Markets in Asia closed mainly higher after the news, as a People’s Bank of China official also said China’s stock-market correction is “almost over.”
Fed speakers: What Monday lacks in economic data, it makes up for with Fed speakers.
Atlanta Fed President Dennis Lockhart, who is a voting member of the Fed’s policy-setting committee this year, gives a speech in Orlando, Fla., at 8:10 a.m. Eastern Time.
Chicago Fed President Charles Evans, also a voting member, will give a speech on the economy in Chicago at 10:30 a.m.
And finally, Fed governor Lael Brainard will talk about the economic outlook and monetary policy in Washington, D.C., at 4:30 p.m.
On Sunday, Fed Vice Chairman Stanley Fischer said on the sidelines of the International Monetary Fund’s annual meetings in Peru that the U.S. central bank is taking a cautious approach in its deliberations about raising interest rates.
Earnings: The earnings season unofficially kicked off last week with results from Alcoa Inc. AA, -6.81% and gets into full swing in coming days, with a raft of bank earnings on tap.
On Monday, Stanley Furniture Co. STLY, -1.05% and AmeriServ Financial Inc. ASRV, -0.30% were slated to report.
Movers & shakers: Shares of EMC Corp. EMC, +5.28% jumped 7.7% premarket, adding to firm gains from last week when The Wall Street Journal reported that Dell Inc. is in talks to combine with the data-storage maker. The Financial Times said Monday Dell is poised to announce the deal as soon as today.
Ford Motor Co. F, -0.13% slipped 0.1% before the opening bell. The car maker said early Monday it will invest about $1.8 billion in China over the next five years.
U.S.-listed shares of Glencore PLC GLCNF, +8.20% could also be active after the commodities giant said it is considering selling two of its copper mines in a bid to shore up its balance sheet. Shares GLEN, -1.20% were down 0.5% in London.
Other markets: European stock markets pulled back, taking a breather from a solid rally last week that saw the Stoxx Europe 600 index SXXP, -0.29% log its best weekly performance since July.
The dollar fell against most other major currencies, sending the ICE dollar index DXY, -0.12% down 0.1%.
Source: MarketWatch
