Futures Rise as U.S. Avoids Shutdown
NEW YORK (TheStreet) -- Stock futures were pointing to a higher open Monday after lawmakers reached a budget agreement to prevent a government shutdown, and the market looked ahead to the start of earnings season with Alcoa (AA) results due after the bell.
Futures for the Dow Jones Industrial Average were up by 10 points, or 13 points above fair value, at 12,336. Futures for the S&P 500 were higher by 1 point, or nearly 1 point above fair value, at 1325. Nasdaq futures were ahead by 4 points, or nearly 4 points above fair value.
Stocks dropped Friday after oil topped $112 a barrel and the market anticipated a government shutdown.Late Friday, President Barack Obama and congressional leaders were able to agree to a plan that would lower spending by $39 billion, funding government operations for the next six months. Northeastern Japan was hit by another powerful aftershock on Monday, exactly a month after a massive quake and subsequent tsunami critically damaged the country's Fukushima Dai-Ichi nuclear plant, spurring fears about a nuclear crisis. Japan's Nikkei slipped 0.5% and Hong Kong's Hang Seng declined by 0.4%. London's FTSE was gaining 0.05% while the DAX in Frankfurt was down by 0.2%. With no economic reports scheduled for release on Monday, the market will likely focus on Alcoa, which will kick off earnings season with its first-quarter results due out after the closing bell. The aluminum producer is expected to post a profit of 27 cents a share. In the year-earlier quarter, Alcoa reported an adjusted profit of 10 cents a share. Alcoa's stock was trading 0.9% higher at $18.08 ahead of Monday's opening bell.
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