Stock Futures Rise as Iraq Anxieties Abate
NEW YORK (TheStreet) -- U.S. stock futures were pointing to a higher open on Wall Street Tuesday as anxieties about the turmoil in Iraq appeared to have abated and oil prices retreated.
Dow Jones Industrial Average futures were rising 22 points, or 23.99 points above fair value, to 16,724. S&P 500 futures were up 2.75 points, or 2.47 points above fair value, to 1,932. Nasdaq futures were higher by 7.8 points, or 8.82 points above fair value, to 3,780.
Crude oil futures for July were down 70 cents to $106.20 a barrel. Over the weekend, the militant group Islamic State in Iraq and Syria (ISIS) uploaded pictures and videos of it conducting mass executions on Iraqi soldiers. Phillip Futures investment analyst Howie Lee, like others, doesn't expect ISIS to really capture the Southern oil fields from their current bases in Northern Iraq since ISIS forces are relatively thin.
President Obama on Monday informed Congress that he would be sending as many as 275 military personnel to Iraq to provide support and security for U.S. personnel and the U.S. Embassy in Baghdad. Obama is also reportedly mulling the deployment of up to 100 special operations troops to the country to counsel its armed forces amid the clashes with Sunni Muslim insurgents.European markets staged a mild rebound Tuesday, partly in response to a slight reduction in oil prices and a hope that, for now, the renewed conflict in Iraq has been priced in. U.S. economic releases on tap for the day include housing starts and building permits for May at 8:30 a.m. EDT, and the Consumer Price Index for May at 8:30 a.m. The Federal Reserve begins its two-day policy meeting on Tuesday. Another $10 billion cut to quantitative easing is a foregone conclusion, and with yields holding well to the 2.4% to 2.66% range, "the Fed's been able to engineer an easy exit from QE without much market disruption," noted David Ader, head of U.S. government bond strategy at CRT Capital Group. Individual stocks to watch Tuesday include General Motors (GM), Apple (AAPL), Tesla (TSLA), and Adobe Systems (ADBE). GM is recalling another 3 million cars because of a defect that causes a similar problem to one that led to an earlier massive recall of small cars, and is linked to 13 deaths. Apple reached a settlement in a civil class-action lawsuit pertaining to the fixing of electronic-book prices. A bill that would allow electric car maker Tesla Motors to open four showrooms in New Jersey and sell directly to consumers in the state got Assembly approval Monday, according to reports. Adobe, the software maker, is forecast by Wall Street to report on Tuesday fiscal second-quarter profit of 30 cents a share on revenue of $1.03 billion U.S. stocks on Monday finished higher, though gains were constricted by escalating violence in Iraq. -- By Andrea Tse in New York June 17 Premarket Briefing: 10 Things You Should Know European Stocks Stage a Mild Rebound U.S. Markets Pull Ahead Though Geopolitical Threats Confine Gains
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