Stock futures were up sharply this morning as investors cling to
hope that the Federal Reserve will avoid making a rash pullback
from quantitative easing.
Before the opening bell,
(INDEXDJX:.DJI) futures were up 0.77% at 15,103. Futures contracts
(INDEXSP:.INX) climbed 0.82% to 1,631.70 and
(INDEXNASDAQ:.IXIC) futures rose 0.94% to 2,964.50.
After the bell the NAHB housing market index is projected to report
a one-point rise to 45 for June. This week will also bring key
indicators, including the consumer price index. On Wednesday, the
Federal Reserve will shed light more light on whether it will
actually begin tapering off its asset purchases, as it said that it
planned to do at its meeting last month.
Wall Street Journal's
veteran Fed reporter Jon Hilsenrath wrote last week that the
central bank is trying to convince traders not to overreact to the
gradual decline in asset purchases. Many expect the Fed to take a
more dovish stance this month after fears of rising short-term
interest rates led to a bond rout.
The week could also see greater volatility as quadruple witching
hits on Friday.
(INDEXNIKKEI:.NI225) rose 2.7%, sneaking out of technical "bear
market" territory. The index is 18% below its 52-week high from
European stocks also pointed north today. Eurozone exports exceeded
imports by 16.1 billion euros in April, a smaller surplus than
March's 18.1 billion. France, Germany, and Italy all posted
surpluses, but Spain had a deficit of 1.9 billion euros.
The leaders of the G8 countries meet today in Northern Ireland to
discuss cooperation on the situation in Syria, a trade agreement
between the United States and EU, and measures to prevent tax
avoidance. France already won a temporary exclusion to protect its
film industry, despite US objections.
) Chairman Eric Schmidt called for simplified global corporate
taxes. Google is one of the multinationals that draws the most ire
from governments for using tax shelters.
Starboard Value, an activist investor with a 5.7% stake in
), wrote a letter to the board urging them to break the company up
rather than sell to Shuanhui, which agreed to acquire it for $4.7
billion, or $34 per share. Starboard posits that the company would
be worth up to $55 per share if it carved itself up. Shares are up
1.37% this morning.
) won the weekend at the box office with
Man of Steel
, which raked in $125.1 million in the US and $74.1 million in
worldwide ticket sales on opening weekend.