By Barbara Kollmeyer, MarketWatch Auto makers due to report
sales, oil, gold give up gains
MADRID (MarketWatch) -- U.S. stocks were pointing to a rebound
on Tuesday after a bruising prior session, but big pullbacks in
commodity prices were casting a shadow over those gains.
In choppy action, futures for the Dow Jones Industrial Average
(DJZ4) rose 37 points to 17,793, while those for the S&P 500
index (SPZ4) added 3.8 points to 2,054.60. Futures for the
Nasdaq-100 index (NDZ4) gained 12.50 points to 4,298.75.
U.S. stocks were swept up in a wave of global selling on Monday,
triggered by weak global data, and led by energy and retail
sectors. The S&P 500 (SPX) and Dow industrials (DJI) each
suffered the biggest one-day losses since Oct. 22, dropping 0.7%
and 0.3% respectively. The Nasdaq Composite (RIXF) slid 1.3%,
dragged by a volatile session for Apple Inc. ((AAPL).
Construction spending for October is coming at 10 a.m. Eastern
Time, while automobile sales for November are the only other piece
of data on the calendar. Bigger data come at the week's end with
jobless data.
"With so many key events in the coming days, I wouldn't be
surprised to see a little risk aversion creeping into the markets,
as traders position themselves ahead of some potentially higher
market volatility," said Craig Erlam, market analyst, at Alpari
U.K., in a note.
Commodities volatile: Oil and precious metals were giving up
gains earned in the prior session. After a 4%-plus rebound for oil
prices on Monday, January crude prices(CLF5) were down more than
1%. Opinion: OPEC cannot outlast the U.S. on oil prices
Gold prices also gave back some of Monday's rally, with February
futures(GCG5) off 1.8% and the precious metal slipping to just
under $1,200 an ounce again. What silver's biggest move in two
years means
Investment banks continued to roll out their predictions for
2015. Citigroup is forecasting the S&P 500 will return 8.5% by
the end of 2015, for a level of 2,200, and sees outperformance for
Japan and emerging-market stocks. That prediction is in line with
that of Dan Greenhaus, strategist at BTIG, who said the main reason
for his own muted expectations is the fact that the first rate hike
by the Federal Reserve -- expected next year -- will be taken badly
by stocks. Fed to stay aggressive in 2015 as it battles
'lowflation'
Stocks in focus:General Motors Co.(GM.XX) and Ford Motor Co.(F)
are due to release sales figures for November. GM is expected to
report that sales edged up 0.6% to 213,418 units last month from a
year earlier, according to Edmunds.com. Ford is likely to see its
sales down 1.4% to 186,984 units.
Shares of Royal Caribbean Cruises Ltd.(RCL) were up nearly 5% in
premarket after being added to the S&P 500.
Avanir Pharmaceuticals Inc.(AVNR) was up 12% in premarket after
the company said it will be acquired by Japan's Otsuka
Pharmaceutical Co. in a $3.5 billion deal, which will pay $17 per
share for Avanir.
Shares of Cypress Semiconductor Corp.(CY) and Spansion
Inc.(CODE) could be active after the companies announced a $4
billion stock merger late Monday. See Movers
Overseas markets: The FTSE 100 index was eyeing its first win in
four days as oil and mining stocks rose. Energy stocks were also
driving gains for Europe , and rally action was also seen across
Asia .
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