Stock Futures Rise Amid Global Central Bank Chatter

U.S. stock futures rise Friday on monetary policy talk from the European Central Bank and the Federal Reserve.
By Keris Alison Lahiff ,

U.S. stock futures climbed Friday amid monetary policy talk from the European Central Bank and the Federal Reserve.

Markets have been relieved that international bodies appear ready to do what it takes to stimulate growth, while the uncertainty over whether the Fed will make its move off of crises-level rates soon has dissipated. 

S&P 500 futures added 0.29%, Dow Jones Industrial Average futures climbed 0.41%, and Nasdaq futures added 0.25%.

The European Central Bank will act quickly to boost inflation, President Mario Draghi said on Friday, in a sign that the bank could introduce additional stimulus. Draghi said that the ECB could tinker with its current bond-buying program and deposit rate as possible ways to prevent inflation from falling below a target 2%. The ECB is set to meet on Dec. 3. 

The ECB's U.S. counterpart, the Fed, has "done everything [it] can to avoid surprising the markets and governments" ahead of an inevitable move off of crises-level interest rates, Fed Vice Chairman Stanley Fischer said on Thursday in a speech in San Francisco. Fischer also reiterated that the central bank has not made a decision yet as to whether it will make its move in December, and said the Fed will continue to assess the data. Markets are currently pricing in an approximate two-in-three chance of a December hike. 

Souring the market mood Friday was a terrorist attack at the Radisson Blu hotel in Mali's capital. Islamic extremists armed with guns and throwing grenades stormed the hotel, killing at least three people and initially taking numerous hostages, authorities said, The Associated Press reported.

Abercrombie & Fitch (ANF) - Get Report surged 18% after doubling quarterly profit on fewer promotional discounts. Sales declined 4%, largely due to currency exchange. 

Foot Locker (FL) - Get Report spiked 8% in premarket trading after beating analysts' quarterly estimates thanks to a quarterly comparable-store sales increase of 8.7%.

Nike (NKE) - Get Report shares jumped 4% before the bell after announcing a 2-for-1 stock split and increasing its quarterly dividend payment by 14%. The athletics wear company also was authorized to begin a $12 billion buyback plan at the end of fiscal 2016.

Gap (GPS) - Get Report shares fell nearly 2% after lowering full-year forecasts. The company expects full-year earnings between $2.38 and $2.42 a share, down from a previous forecasts of at least $2.75. The retailer also reported a third-quarter sales decline driven by a drop in same-store sales at Gap and Banana Republic stores. 

Splunk (SPLK) - Get Report added 1.5% after reporting third-quarter earnings of 5 cents a share, 4 cents above estimates. The enterprise software developer also announced that its CEO of seven years, Godfrey Sullivan, was stepping down and that Doug Merritt, its sales chief, would assume the position. 

Williams-Sonoma (WSM) - Get Report fell 3.5% despite a better-than-expected quarter. The homewares retailer earned 77 cents a share in its third quarter, a nickel above forecasts. Sales climbed 8% to $1.23 billion, coming in a nudge above estimates. 

Fresh Market (TFM)  slid 1% following a mixed quarter. The supermarket chain earned 23 cents a share, a penny above estimates, while revenue of $433.1 million missed expectations by just over $3 million. However, sales were 3.2% higher than a year earlier. 

Loading ...