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Stocks May Open Higher Following Rally In China - U.S. Commentary


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(RTTNews.com) - Stocks may move to the upside in early trading on Monday following the mixed performance seen last week. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 97 points.

The upward momentum on Wall Street comes on the heels of a rally by Chinese stocks, which extended the substantial rebound seen last Friday.

Chinese stocks surged higher amid optimism about additional stimulus to stimulate the world's second largest economy after last week's disappointing GDP data.

After three top Chinese financial regulators stepped in to bolster investor confidence last Friday, Chinese President Xi Jinping vowed "unwavering" support for the country's private sector.

In an open letter published in state media, Xi said Beijing would continue to value and protect the country's private business owners to ensure a "better tomorrow."

Among individual stocks, shares of Kimberly-Clark (KMB) are moving notably higher in pre-market trading after the consumer products company reported better than expected third quarter results. The company also named President and COO Michael Hsu as its new CEO.

Professional services provider Jacobs Engineering Group ( JEC ) is also likely to see early strength after announcing the sale of its energy, chemicals and resources business to Australia's WorleyParsons for $3.3 billion.

On the other hand, shares of Hasbro (HAS) are likely to come under pressure after the toymaker reported weaker than expected third quarter results.

Overall trading activity may be somewhat subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.

After failing to sustain an early move to the upside, stocks turned mixed over the course of the trading session on Friday. The major averages pulled back well off their highs of the session, with the Nasdaq and the S&P 500 ending the day in negative territory.

While the Dow rose 64.89 points or 0.3 percent to 25,444.34, the Nasdaq fell 36.11 points or 0.5 percent to 7,449.03 and the S&P 500 edged down 1.00 points or less than a tenth of a percent to 2.767.78.

The major averages also turned in a mixed performance for the week. The Nasdaq fell by 0.6 percent, while the Dow rose by 0.4 percent and the S&P 500 was nearly flat.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan'sNikkei 225 Index rose by 0.4 percent, while Hong Kong's Hang Seng Index surged up by 2.3 percent.

The major European markets have also moved to the upside on the day. While the U.K.'sFTSE 100 Index has advanced by 0.8 percent, the German DAX Index is up by 0.6 percent and the French CAC 40 Index is up by 0.4 percent.

In commodities trading, crude oil futures are slipping $0.22 to $68.90 a barrel after rising $0.47 to $69.12 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,226.10, down $2.60 from the previous session's close of $1,228.70. On Friday, gold dipped $1.40.

On the currency front, the U.S. dollar is trading at 112.78 yen compared to the 112.55 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.1490 compared to last Friday's $1.1514.


Read the original article on RTTNews (http://www.rttnews.com/2945762/stocks-may-open-higher-following-rally-in-china-u-s-commentary.aspx)


For comments and feedback: contact editorial@rttnews.com




This article appears in: Stocks , World Markets
Referenced Symbols: JEC



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