European and Asian markets rallied after yesterday's carnage and
US futures are following suit this morning.
Yesterday was the worst equities route in over a year and a half.
Global stock markets bled more than $1.8 trillion after the Federal
Reserve again hinted that its monetary stimulus might be scaled
back before the end of the year and economic data raised concerns
about the health of China's economy.
After the major US indices all fell more than 2% yesterday, futures
are pointing up ahead of the opening bell.
(INDEXDJX:.DJI) futures were up 0.51% at 14,776. Futures contracts
(INDEXSP:.INX) rose 0.61% to 1,593.60 and
(INDEXNASDAQ:.IXIC) futures climbed 0.52% to 2,895.00. Gold also
recovered 0.60% to $1,293.90 and oil futures are flat. There are no
major economic releases due out today.
St. Louis Fed chief James Bullard wrote a dovish news release
saying that the Fed should wait much later to reduce its asset
"A more prudent approach would be to wait for tangible signs that
the economy was strengthening and that inflation was on a path to
return toward target before making such an announcement," he said.
Asian equities recovered from an initial drop after China's central
bank injected 50 billion renminbi into the market to stabilize
interest rates. European shares rallied strongly.
) lost 7.7% in after-hours trading despite doubling its dividend.
The largest maker of database software reported lower-than-expected
revenue as it struggles to gain market share in cloud-based
products that its customers increasingly prefer. Adjusted earnings
were $0.87 per share on $11 billion in sales. Oracle will raise its
dividend to $0.12 and vowed to buy back $12 billion in stock.
Tesla Motors Inc
) unveiled a new way to charge its electric Model S vehicles. A new
robotic system for swapping batteries takes 90 seconds, much less
than the half hour it takes to charge them.
that Washington is considering raising capital requirements for the
largest US banks. The new regulation could double the reserve rate
to 6% of total assets, regardless of their risk. The international
standard minimum leverage ratio is 3%. Most big US banks, including
JPMorgan Chase & Co
) fall short of this reserve rate and might have to withhold
dividends to meet the standard.
Wells Fargo & Co
) already has a sufficient reserve ratio.