Stock Futures Point to Higher Wall Street Open
NEW YORK ( TheStreet) -- Stock futures were pointing to a higher Wall Street open Tuesday as investors received some relief from recent eurozone worries.
The Reserve Bank of Australia's surprise quarter percentage point cut to its benchmark lending rate also stoked risk-on sentiment.
Futures for the Dow Jones Industrial Average were rising 38 points, or 40.89 points above fair value, at 13,475. Futures for the S&P 500 were up 6.70 points, or 5.41 points above fair value, at 1444. Futures for the Nasdaq were gaining 11.75 points, or 12.52 points above fair value, at 2800.
Yields on Spanish 10-year government bonds were easing Tuesday as Economic Minister Luis de Guindos indicated that the country continues to consider whether to pursue a bailout, which if sought would likely trigger the European Central Bank's bond-buying plan and more clarity on the eurozone outlook.Paul Donavan, global economist at UBS, said, "Spain continues to play the Great Game of the Euro, with the government coyly suggesting that it will look at the proposals for conditions for the bail out everyone in the market expects them to apply for. Meanwhile the credit rating agency Moody's has cast doubts on the bank stress test results," which last week had shown an as expected capital shortfall within the tolerance of the European Financial Stability Facility. Reuters has reported that Spain is ready to request a eurozone bailout for its public finances as early as next weekend, but Germany has signaled that it should hold off as German Finance Minister Wolfgang Schaeuble emphasized that Spain is taking all the right steps to overcome its fiscal problems and doesn't need a bailout. The major U.S. equity averages finished mixed on Monday as a downbeat speech by Federal Reserve Chairman Ben Bernanke knocked stocks off early highs. On tap Tuesday in the U.S. are September sales reports from the major automakers. The FTSE 100 in London was up 0.23% and the DAX in Germany was higher by 0.40% on Tuesday. The Nikkei Average in Japan closed down 0.12% amid concerns over the outlook for corporate earnings. Hong Kong's market was closed for a public holiday. November crude oil futures were up 23 cents to $92.71 a barrel. December gold futures were up $1.10 at $1,796.80 an ounce. The benchmark 10-year Treasury was off 3/32, lifting the yield to 1.637%. The greenback was down 0.17%, according to the dollar index. In corporate news, JPMorgan Chase (JPM) is reportedly being accused of fraud by New York Attorney General Eric Schneiderman. Shares were up incrementally in premarket trading. Boeing's (BA) engineers and technical workers' union rejected late Monday the aerospace giant's four-year contract offers. The union represents 23,000 workers. Talks on an agreement are expected to resume Tuesday. Shares were up fractionally. Automakers such as Ford (F) and General Motors (GM) are expected to post auto and truck sales for September throughout Tuesday. Ford shares were rising 0.91% and GM shares were gaining more than 1%. PetSmart (PETM), the pet products retailer, was named to join the S&P 500, replacing Sunoco (SUN), which is being acquired by Energy Transfer Partners (ETP). PetSmart shares were popping more than 3%.
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