MARKET SNAPSHOT: Stock Futures Rise In Shortened Trading Day As Investors Brush Aside Yellen Comments
30 May 2016 - 11:19AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
Stock futures pointed slightly higher in a shortened session on
the Memorial Day holiday Monday, rising against a backdrop of a
stronger dollar after heavy hints of a U.S. interest rate cut from
Federal Reserve Chairwoman Janet Yellen late last week.
Dow Jones Industrial Average futures rose 45 points, or 0.3%,
while those for the S&P 500 index added 4.2 points, or 0.2%, to
2,101.50. Nasdaq-100 futures gained 8.25 points, or 0.2%, to
4,518.50.
Financial markets in the U.S. are closed, but futures tied to
U.S. stocks will trade in a shortened session until 1 p.m. Eastern
Time, then reopen at 6 p.m. Eastern.
Read:When do stock and bond markets close for Memorial Day?
(http://www.marketwatch.com/story/when-do-markets-close-for-memorial-day-2016-05-25)
(http://www.marketwatch.com/story/when-do-markets-close-for-memorial-day-2016-05-25)Wall
Street stocks brushed aside hints of a summer rate hike
(http://blogs.marketwatch.com/capitolreport/2016/05/27/live-blog-and-video-of-janet-yellen-interview/)from
Fed Chairwoman Yellen on Friday. All three main index booked their
biggest weekly gains in several weeks
(http://www.marketwatch.com/story/caution-puts-lid-on-us-stock-futures-ahead-of-yellen-speech-2016-05-27)
ahead of the long holiday weekend.
(http://blogs.marketwatch.com/capitolreport/2016/05/27/live-blog-and-video-of-janet-yellen-interview/)
That action continued on Monday, with stock futures higher. A
big gainer on Monday was the dollar
(http://www.marketwatch.com/story/gold-clings-to-1200-an-ounce-after-yellen-says-rate-increases-coming-within-months-2016-05-30),
which hit a level above Yen111 against the yen , while gold prices
(http://www.marketwatch.com/story/gold-clings-to-1200-an-ounce-after-yellen-says-rate-increases-coming-within-months-2016-05-30)
struggled to hold onto the $1,200-an-ounce level. In Asia, the
Nikkei 225 index
(http://www.marketwatch.com/story/nikkei-shoots-up-over-1-after-yellen-comments-trigger-yen-weakness-2016-05-30)
shot up 1.4% as the yen fell, lifting shares of exporters. European
stocks
(http://www.marketwatch.com/story/europe-stocks-struggle-for-traction-against-holiday-closures-for-us-london-2016-05-30)
were having a muted day, with London closed for a holiday.
WTI crude-oil prices fell 15 cents to $49.18 a barrel.
For the week ahead, investors will continue to ponder Yellen's
comments and also look ahead to big data such as Friday's nonfarm
payrolls. Economists surveyed by MarketWatch are projecting the
economy to have created 158,000 new jobs in May, slightly below the
160,000 reported in April.
Some analysts said if the data is weaker, that might put a
wrench in the Fed's plans to hike interest rates in the near term.
Sakis Paraskevov, senior fundamental analyst at IronFX, isn't so
convinced that a Fed hike will happen this summer.
"We believe that the Committee will not rush into the next hike
without feeling confident that the latest improvements in the data
will prove durable, something that requires more time than just a
few weeks," said Paraskevov in a note to clients on Monday.
Stocks to watch: Tesla Motors Inc. (TSLA) could grab the
spotlight when trading resumes Tuesday after the electric-car maker
said it has scheduled a grand opening of its battery factory
outside of Reno, Nevada for July 29.
(END) Dow Jones Newswires
May 30, 2016 06:04 ET (10:04 GMT)
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