By Anora Mahmudova and Carla Mozee, MarketWatch OPEC meeting in
focus this week
NEW YORK (MarketWatch) -- U.S. stock futures built on their
multi-week run of gains on Monday, as investors were still reacting
positively to liquidity actions from China's central bank last
week.
Equities in Asia rallied, while European stocks rose after
better-than-expected data from Germany.
Futures for the Dow Jones Industrial Average (DJZ4) rose 43
points, or 0.2%, to 17,823, and those for the S&P 500 index
(SPZ4) tacked on 6 points, or 0.3%, to 2,067. Futures for the
Nasdaq 100 (NDZ4) climbed 15 points, or 0.4%, to 4,264.
The economic calendar is light with just the Dallas Fed
Manufacturing Survey due at 10:30 a.m. Eastern Time. But later in
the week, which will be interrupted by Thanksgiving on Thursday,
investors will receive a stack of updates on housing, inflation and
a revision in third-quarter gross domestic product for the U.S.
U.S. stocks ended Friday's session higher guided by gains in the
materials sector after China moved to bolster its economy by
cutting interest rates. The S&P 500 (SPX) closed up 0.5% higher
and ended the week up by 1.2%.The Dow Jones Industrial Average
(DJI) rose 1% for the week and the Nasdaq Composite (RIXF) added
0.5%.
Need to know: Relax, stocks will only rise 5% next year
OPEC spotlight: Energy stocks also rose ahead of Thursday's
meeting of the Organization of Petroleum Exporting Countries, where
members are facing calls to cut production to counteract the recent
slide in crude-oil prices. Ahead of Wall Street's open, light,
sweet crude futures for January delivery (CLF5) turned lower, but
remained above $76 a barrel, which until recently represented a
four-year low for the price of oil.
"Plenty of headwinds to OPEC action remain, but we see greater
prospects for either a stronger enforcement of the quota or an
outright cut of the quota," said Morgan Stanley commodity analysts
led by Adam Longson, in a Monday note.
A rising likelihood that a Monday deadline on an agreement to
curb Iran's nuclear program will be extended may factor into
decisions at OPEC, "but even last week, Libya called for stronger
enforcement of the existing 30 mmb/d quota, and most oil exporters
are calling for at least some action to settle oil markets," said
Morgan Stanley.
Stocks to watch:Tesla (TSLA) is in talks with German automaker
BMW about working together to develop batteries and collaborate
over light-weight parts, Tesla's Chief Executive Elon Musk told
German weekly Der Spiegel. Shares were 1% higher in premarket
trade.
Apple Inc.'s (AAPL) price target at Susquehanna was raised to
$135 from $120. Shares were up 0.3% at $116.81 in premarket
action.
Diversified industrial conglomerate United Technologies Corp.
(UTX) said Chairman and Chief Executive Louis Chenevert will
retire, effective immediately, after 22 years with the company.
United Technologies also affirmed its 2014 per-share earnings and
sales outlooks. Shares were unchanged ahead of the bell.
Trina Solar Ltd. (TSL) shares fell premarket after the company
posted flat profit on revenue growth of 13% for the third
quarter.
Other markets: European stocks got a bang out of the Germany's
IFO business-climate survey, and the Hang Seng and Shanghai
Composite indexes each leapt nearly 2% in a first chance to react
to China's rate cuts. Read Craig Stephen's column on whether
investors should buy into China's rate-move.
Gold futures (GCZ4) was mostly unchanged at $1,198, and the
dollar(USDJPY) topped Yen118.
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