U.S. stock futures gained Wednesday, along with European stocks,
as rising oil prices buoyed shares of energy companies in premarket
trade.
S&P 500 futures advanced eight points, or 0.4%, to 2088.
E-mini Dow futures added 58 points, or 0.3%, to 17824. E-mini
Nasdaq-100 futures rose 16 points, or 0.4%, to 4447. Changes in
stock futures don't always accurately predict moves in the stock
market after the opening bell.
Crude-oil futures rallied 2.5% to $61.66 a barrel, after rising
3.4% on Tuesday. Chevron Corp. and Exxon Mobil Corp. were among the
biggest gainers in the Dow industrials, both up about 0.8%
premarket. Offshore oil driller Transocean Ltd. shares gained 2.7%
premarket, leading the S&P 500 higher.
Stocks ended little changed Tuesday, with the Dow Jones
Industrial Average slipping 0.01% to 17764.04. The S&P 500
added 0.04% to 2080.15, while the Nasdaq Composite Index slipped
0.15% to 5013.87.
Stocks have pulled back in recent sessions as it becomes more
likely the Federal Reserve will begin raising interest rates later
this year. The Dow ended Tuesday at its lowest level since April 2
and has fallen 3% from its May 19 record close. Recent declines
have dragged the blue-chip index back into negative territory for
the year, down 0.3%.
"In the big picture, the rise in interest rates will override
any short-term rallies," said Peter Boockvar, chief market analyst
at the Lindsey Group LLC.
"Two things can impact a very expensive market: a rise in
interest rates and a slowdown in earnings," he said. "We've clearly
seen a slowdown in earnings and now we're seeing a rise in rates,"
he added, pointing to the jump in government bond yields.
The selloff in government bonds accelerated Wednesday, pushing
the yield on German 10-year bonds above 1% for the first time since
September. The yield on the 10-year German bond, known as bund, was
recently at 1%, after rising as high as 1.05% earlier in the
session. Yields rise as prices fall.
U.S. Treasury prices also declined. The yield on the 10-year
Treasury note advanced to 2.468% from 2.417% on Tuesday.
European stocks gained, sending the Stoxx Europe 600 index up 1%
after six straight days of declines. France's CAC 40 rose 0.9% and
Germany's DAX advanced 1.3%.
The pace of economic reports picks up later this week. Investors
will get a look at how much consumers spent in May with Thursday's
retail sales report, while Friday will bring a reading on inflation
in May.
In other markets, gold futures rose 0.8% to $1186.50 an
ounce.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
Access Investor Kit for Transocean Ltd.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=CH0048265513
Access Investor Kit for Chevron Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US1667641005
Access Investor Kit for Exxon Mobil Corporation
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US30231G1022
Access Investor Kit for The NASDAQ OMX Group, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US6311031081
Subscribe to WSJ: http://online.wsj.com?mod=djnwires