U.S. Stock Futures Rise as Geopolitical Tensions Ease; Dovish Fed Expected in Jackson Hole

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U.S. stock futures returned to positive territory Monday morning, holding constructive gains as diplomatic progress in Eastern Europe and expectations for more dovish comments from the Federal Reserve in Jackson Hole, Wyoming later this week lift equities back toward key technical resistance levels.

A bidding war for Family Dollar ( FDO ) is also generating interest for equities, after Dollar General ( DG ) made an offer of $78.50 per share in cash for the dollar-store operator, topping Dollar Tree's (DT) offer of $74.50 per share in cash and stock.

The upbeat U.S. market is following the lead from Europe, where equities were also underpinned by encouraging negotiations between the Russian and Ukraine foreign ministers. The UK's FTSE 100, however is underperforming other European bourses in reaction to hawkish comments from Bank of England Gov. Mark Carney. Carney was quoted in the UK Sunday Times as saying the central bank could increase UK rates before wages improve, driving sterling higher, but leaving the FTSE trailing gains in the German and French equity indices.

This week's economic calendar was light Monday, with only the NAHB housing market index (expected unchanged at 53.0), but the schedule will get busier throughout the week, culminating with the Federal Reserve conference in Jackson Hole on Thursday and Friday.

-Dow Jones Industrial up 0.52%

-S&P 500 futures up 0.50%

-Nasdaq 100 futures up 0.48%


Nikkei up 0.03%

Hang Seng unchanged

Shanghai Composite up 0.57%

FTSE-100 up 0.74%

DAX-30 up 1.48%


(+) Large cap tech: higher

(+) Chip stocks: higher

(+) Software stocks: higher

(+) Hardware stocks: higher

(+) Internet stocks: higher

(+/-) Drug stocks: mixed

(+) Financial stocks: higher

(+/-) Retail stocks: mixed

(+) Industrial stocks: higher

(+) Airlines: higher

(+) Autos higher


(+) MOBI (+17.73%) Q2 revenue up on smartphone growth

(+) DG (+10.08%) Made competing offer for Family Dollar ( FDO ) of $78.50 per share, $4 more than Dollar Tree ( DLTR ) offer

(+) ACHN (+5.41%) Phase II testing results from hepatitis C treatment showed no signs of the virus after four weeks


(-) DLTR (-1.45%) Dollar General ( DG ) topped DLTR offer for Family Dollar ( FDO ) by $4 per share

(-) MNST (-1.10%) Downgraded to Hold at Jefferies

(-) FN (-12.68%) Audit committee begins internal investigation into accounting issues, delays Q4 report

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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