By Anora Mahmudova and Victor Reklaitis, MarketWatch

GameStop soars after upbeat holiday-season sales

U.S. stock futures pointed to an upbeat session as energy plays climbed on Tuesday, helping the market rebound from the heavy selling seen last week that left the main indexes at their multi-month lows.

A modest uptick in crude-oil prices helped lift energy companies, which had been battered over the past several sessions. The U.S. oil benchmark was trading 0.7% higher on Tuesday, recovering after a brief dip below $31.

S&P 500 futures rose 19 points, or 1%, to 1,933, while those for the Dow Jones Industrial Average tacked on 150 points, or 0.9%, to 16,436. Nasdaq-100 futures added 45 points, or 1%, to 4,318.

"There is some room to bounce after heavy selling at the start of the year, but I would be cautious to read too much into futures prices, as we've seen markets turn during the U.S. trading hours," said Brian Fenske, head of sales trading at ITG.

On Monday, the S&P and Dow gained 0.1% and 0.3% (http://www.marketwatch.com/story/stock-futures-rise-shaking-off-another-china-selloff-and-falling-oil-prices-2016-01-11), respectively, catching their breath after suffering their worst five-day start to a year ever (http://www.marketwatch.com/story/us-stock-futures-dow-eyes-triple-digit-gain-after-china-ends-higher-2016-01-08). Energy stocks fueled the gains.

But the Nasdaq Composite on Monday finished 0.1% lower, dropping for an eighth session in a row.

"We believe the big takeaway for U.S. investors at the start of 2016 is that China is one of many issues that will likely create more volatility," said Kristina Hooper, U.S. investment strategist for Allianz Global Investors, in a note. But "that is only part of the story," as good U.S. economic reports suggest "investors with longer time horizons could find attractive opportunities amid the disarray," she added.

China's Shanghai Composite closed higher on Tuesday (http://www.marketwatch.com/story/china-stocks-gain-asian-markets-breathe-sigh-of-relief-2016-01-11), but it is still down nearly 15% for the year amid worries over how Beijing is managing market turmoil and an economic slowdown in the world's second-largest economy.

Other markets: European stocks traded higher (http://www.marketwatch.com/story/european-stocks-rebound-after-four-day-losing-streak-2016-01-12). Beyond Shanghai, Asian markets mostly closed lower (http://www.marketwatch.com/story/china-stocks-gain-asian-markets-breathe-sigh-of-relief-2016-01-11). Gold futures dipped, while a key dollar index edged up.

Individual movers: GameStop (GME) soared 12% premarket after the company said same-store sales rose 4.4% over the holiday season.

Alcoa Inc. (AA) late Monday reported adjusted quarterly profit that topped Wall Street's forecasts, but revenue missed expectations (http://www.marketwatch.com/story/alcoa-reports-18-drop-in-revenue-2016-01-11-17485259). Shares were trading modestly lower.

Also late Monday, Lululemon Athletica Inc. (LULU) raised its fourth-quarter guidance (http://www.marketwatch.com/story/lululemon-hikes-outlook-on-strong-holiday-sales-2016-01-11), citing strong sales for the holiday season.

Horizon Pharma PLC (http://www.marketwatch.com/story/horizon-pharmas-stock-surges-after-boosting-sales-outlook-2016-01-12)(HZNP) surged 7% in premarket trade, after the drugmaker raised its 2016 sales outlook, as a result of the expected close of the Crealta Holdings acquisition this week.

Coca-Cola Co (http://www.marketwatch.com/story/coca-cola-shares-up-11-after-upgrade-to-buy-at-stifel-2016-01-12).(KO) shares are up 1.4% after the beverage giant was upgraded to buy from hold at Stifel, with analysts citing expectations of improved organic growth.

Intel Corp (http://www.marketwatch.com/story/intels-stock-climbs-after-bullish-analyst-call-2016-01-12). shares (INTC) rose 1.5% after J.P. Morgan placed a bullish rating on the chip maker, saying strength in its data center and Internet of Things businesses should offset continued lackluster PC demand.

After the market's close, railroad operator CSX Corp. (CSX) is due to report quarterly results.

Economic news: A November reading on U.S. job openings is slated to come at 10 a.m. Eastern Time.

Richmond Fed President Jeffrey Lacker is expected to deliver a speech in Columbia, S.C., on the economic outlook at 3:15 p.m. Eastern Time, while Fed Vice Chairman Stanley Fischer is due to give a speech on monetary policy and financial stability in Paris at 5:30 a.m.

 

(END) Dow Jones Newswires

January 12, 2016 09:08 ET (14:08 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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