U.S. Stock Futures Grind Higher on Bullish Overseas Markets, Ease in Geopolitical Risks, Falling Energy Prices

Global equities, including U.S. stock futures, rallied Wednesday as easing geopolitical tensions, falling

energy prices and diminished expectations for higher UK and U.S. interest rates overshadowed weak Asian economic data.

U.S. stock futures surrendered some of their earlier gains following weaker-than-expected July retail sales, but continue to hold constructive gains ahead of speeches from two of the Federal Reserve's more consistent doves: NY Fed President William Dudley (voting), and Boston Fed President Eric Rosengren (non-voting). Wall Street primarily will be looking to both for further validation that strength in recent economic statistics isn't enough ammunition for the Fed to raise short-term U.S. rates.

Retail sales were unchanged in July, missing estimates for a modest 0.2% gain. Excluding sales of automobiles, retail sales rose by only 0.1%, also below estimates for a 0.4% gain. Excluding both auto and gas, sales were up only 0.1% versus a 0.3% gain estimate. The data followed weak Q2 sales and lowered sales outlook from Macy's ( M ) as the retailer struggles to make up for a disappointing first quarter.

Wednesday's remaining data include the Atlanta Fed Business Inflation Expectations Index and June business inventories (expected +0.4%), both due at 10 a.m. ET.

-Dow Jones Industrial up 0.25%

-S&P 500 futures up 0.32%

-Nasdaq 100 futures up 0.38%


Nikkei up 0.35%

Hang Seng up 0.81%

Shanghai Composite up 0.06%

FTSE-100 up 0.33%

DAX-30 up 1.17%


(+) Large cap tech: higher

(+) Chip stocks: higher

(+) Software stocks: higher

(+) Hardware stocks: higher

(+) Internet stocks: higher

(+) Drug stocks: higher

(+) Financial stocks: higher

(+/-) Retail stocks: mixed

(+) Industrial stocks: higher

(+/-) Airlines: flat

(+) Autos higher


(+) CSIQ (+8.69%) Reported strong Q2 results, with both earnings and revenue beating estimates

(+) HPJ (+6.03%) Q2 income higher on increased sales

(+) AMZN (+2.45%) Introduces new credit and debit card reader for local businesses


(-) ARWR (-7.38%) Reported a Q3 net loss of $0.22, meeting estimates

(-) CREE (-10.00%) Mixed Q4 results and Q1 guidance in line to below Street estimates.

(-) KING (-21.81%) Reported lower-than-expected Q2 revenue, cut full-year guidance, downgraded by RBC Capital to Sector Perform

(-) JDSU (-5.04%) Beat Q4 expectations but set Q1 outlook below estimates, downgraded at B.Riley to Neutral from Buy

(-) SEAS (-25.58%) Q2 EPS and revenue miss street expectations

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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