Stock futures were building on Friday's impressive gains that were set in motion after the February "goldilocks" labor market report and easing trade-war tensions. The Dow's 400+ point rally spilled into Asian markets before moving onto Europe, leaving a sea of green in its wake. With the aid of a stronger dollar and stable Treasury yields, Dow futures were indicating a 40 point gain at the cash open.
Investor's appetite for risk is also encouraged by recent developments between North Korea and the US indicating Pyongyang is ready to give up its provocative military actions towards the West. In the wake of extending an olive branch to President Donald Trump last week, Kim Jung Un extended the overture with offers to put a US embassy in Pyongyang, and formal peace treaty with the US.
The pervasive risk-on trade is buoying stocks in nearly all sectors with the technology sector outperforming. Even energy shares are grinding higher despite softer oil prices . Brent crude oil is lower in Monday's pre-market trade with increased US shale production creating supply pressures.
In corporate news, shares of Oclaro ( OCLR ) were driven significantly higher after the company agreed to be acquired by Lumentum Holdings ( LITE ) for $1.8 billion while Johnson Controls ( JCI ) shares are getting a boost from reports that its power solutions business is up for sale.
Monday's economic calendar is a clean slate before a deluge of data later in the week. The Treasury kicks off its monthly refunding with Monday's auction of 3-month, 6-month bills, 3-year notes and 10-year notes later this afternoon.
-Dow Jones Industrial up 0.17%
-S&P 500 futures up 0.18%
-Nasdaq 100 futures up 0.38%
Nikkei up 1.65%
Hang Seng up 1.93%
Shanghai Composite up 0.58%
FTSE-100 down 0.06%
DAX-30 up 0.41%
PRE-MARKET SECTOR WATCH
(+) Large cap tech: Higher
(+) Chip stocks: Higher
(+) Software stocks: Higher
(+) Hardware stocks: Higher
(+) Internet stocks: Higher
(+) Oil stocks: Higher
(+/-) Biotech stocks: Mixed
(+) Drug stocks: Higher
(+) Financial stocks: Higher
(+) Retail stocks: Higher
(+/-) Industrial stocks: Mixed
(+) Airlines: Higher
(+/-) Autos: Lower
(+) OCLR (+24.71%) To be acquired by Lumentum ( LITE ) for $1.8 billion
(+) KANG (+8.54%) Received acquisition offer from Yunfeng Capital and Alibaba ( BABA )
(+) JCI (+2.10%) Exploring a sale of its power business
(-) SVRA (-12.57%) Aironite misses endpoints in heart failure trial
(-) HPJ (-7.79%) Reported disappointing premliminary Q4 results
(-) ESPR (-5.10%) Rival Regeneron ( REGN ) offers cholesterol drug at a discount