U.S. stock market futures pushed higher on Monday, extending gains from late last week as investors readied for the start of second-quarter earnings season, with Alcoa Inc.'s (AA.NaE) unofficial kickoff due after the close. The data calendar offers up only consumer credit.
Extending earlier gains, futures for the Dow Jones Industrial Average rose 73 points, or 0.5%, to 15,152, while those for the Standard & Poor's 500 index rose 10 points, or 0.6%, to 1,637.3. Futures for the Nasdaq 100 index added 19 points, or 0.7%, to 2,976.
At 3 p.m. Eastern Time, May consumer credit data will be released.
On Friday, data showed the U.S. added 195,000 new jobs in June, and employment gains in the prior two months came in stronger than originally reported. That data triggered sizeable gains for Wall Street. The S&P 500 rose 16.48 points, or 1%, to 1,631.89. The S&P 500 finished above its key 50-day moving average for the first time since June 19.
The Dow Jones Industrial Average rallied 147.29 points, or 1%, to 15,135.84.
The bigger data event this week will be the minutes of the June 18-19 Federal Open Market Committee meeting, due for release on Wednesday. Economists will be looking for clues as to what other Fed officials think about tapering plans and what factors caused the Fed to lean towards tapering soon. See Economic Preview
'The rally from June lows means that highs for the S&P 500 above 1,650 are now the next target, but Wednesday's minutes could easily pull the rug out from underneath the current move higher,' said Chris Beauchamp, market analyst at IG.
Outside of data, investor focus will turn second-quarter earnings season, as many companies have brought down their forecasts considerably. J.P. Morgan Chase & Co. will release results on Friday, and financial firms are expected to set the tone. Read a preview
Dan Greenhaus, chief global strategist at BTIG, said in a note that earnings consensus overall is roughly expecting 1.5% growth on the top line and similar on the bottom, but excluding financials, growth is expected to be negative.
'This would be the second consecutive quarter of unimpressive earnings growth, which is rubbing many clients the wrong way, especially as higher rates are expected to slow debt-fueled stock buybacks (and thus a boost to EPS),' said Greenhaus in a note.
He added BTIG is more positive than the consensus on earnings season, but 'not by much. More important of course will be guidance.'
Aluminum producer Alcoa (AA.NaE) is expected to report earnings of six cents a share on revenue of $5.85 billion, according to a FactSet survey of Wall Street analysts. Those results come after the market's close on Monday.
In overseas markets on Monday, Europe stocks rallied after a selloff seen at the end of last week. The Stoxx Europe 600 index rose 1.2%. In Asia, though, Chinese stocks fell on worries Beijing won't ease its policies even as growth slows. Citigroup on Monday cut its growth forecasts for China, citing risks to growth from 'policy missteps.'
The dollar remained firmer across the board, while gold also rose. Oil prices fell.
Source: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/us-detail.page?resId=201307080559MRKTWTCHNEWS_SVC_9236E03E-E7AB-11E2-8134-002128040CF6&FullArticle=true
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