By Barbara Kollmeyer, MarketWatch
Consumer spending, core inflation en route
MADRID (MarketWatch) -- U.S. stock futures pushed higher on
Monday, building on the moderate gains seen at the tail end of last
week, as comments from Federal Reserve Chairwoman Janet Yellen and
China's central-bank chief lent support to the bulls.
A clutch of data reports are on the way, including readings on
consumer spending and core inflation.
Futures for the Dow industrials (YMM5) rose 90 points, or 0.5%,
to 17,714, while those for the S&P 500 index (ESM5) added 8.9
points, or 0.4%, to 2,061.50. Coming out ahead, futures for the
Nasdaq 100 index (NQM5) gained 27.50 points, or 0.6%, to
4,353.25.
Given how negative last week was for stocks, a strong move
higher isn't too surprising, said Craig Erlam, senior market
analyst at Oanda.
"The dovish comments from both Fed Chairwoman Janet Yellen and
People's Bank of China Governor Zhou Xiaochuan are giving markets a
big lift, and in the absence of negative data or news, I imagine
this will continue to buoy the markets throughout the session,"
Erlam said in emailed comments.
At the tail end of Wall Street's day on Friday, Yellen said
gradual hikes are likely this year, but that the central bank will
move cautiously, speaking at a conference sponsored by the San
Francisco Fed.
And speaking on Sunday, the PBOC governor said
(http://www.marketwatch.com/story/china-central-bank-chief-warns-of-us-dollar-strength-2015-03-29)
he saw "more room" for China to ease policy if the economy stays
soft and inflation continues to weaken. On Monday, Chinese stocks
closed at a seven-year high
(http://www.marketwatch.com/story/chinese-stocks-rally-on-silk-road-details-2015-03-30).
Read: If the Fed doesn't hike rates, it will be due to one of
these charts ()
()Gains weren't limited to stock futures, as the Stoxx Europe
600 index rallied Monday, with the benchmark up by nearly 1%.
Yellen's comments triggered modest gains for Wall Street on
Friday, though overall, it was another down week for markets.
Standing out, the Nasdaq Composite (RIXF) finished the session 0.6%
higher, though it posted the biggest weekly decline since Oct. 10,
2014. The S&P 500 (SPX) and Dow industrials (DJI) each closed
up 0.2%, but suffered the biggest weekly declines since the end of
January.
()Big week for data: This shortened week for investors will
still see nonfarm-payrolls data arrive on Friday. It kicks off
Monday with reports on core inflation, consumer spending and
personal income for February, due at 8:30 a.m. Eastern Time. Core
inflation is set to rise 0.1%, unchanged from January, while
consumer spending is poised to rise 0.3%, after a 0.2% fall in
January.
Read: What happens when the jobs report is released on Good
Friday
(http://www.marketwatch.com/story/what-happens-when-jobs-report-is-released-on-good-friday-2015-03-27)
Yellen said Friday that the central bank would be
"uncomfortable" raising rates if consumer prices, wage growth and
other measures of underlying inflation were to weaken.
At 10 a.m. Eastern Time, pending home sales for February are due
for release.
Stocks to Watch: Shares of Catamaran Corp.(SXCI) surged 25% in
premarket after UnitedHealth Group Inc.(UNH) said it will buy the
pharmacy-benefit manager for around $12.8 billion in cash.
Teva Pharmaceutical Industries Ltd.(TEVA) on Monday announced an
agreement to buy Auspex Pharmaceuticals Inc.(ASPX) in a deal valued
at $3.2 billion. Teva rose 1.7% in premarket, though Auspex wasn't
yet active.
Cal-Maine Foods Inc.(CALM)(CALM) reported sales grew 11% in the
third quarter due to increased demand, especially for specialty
eggs, over the holiday period.
AAR Corp. (AIR) will also report on Monday.
Other markets: U.S. crude-oil prices
(http://www.marketwatch.com/story/iran-talks-keep-crude-oil-futures-under-pressure-in-asia-2015-03-30-31032459)
fell 69 cents to $48.18 a barrel (CLK5) , while gold
(http://www.marketwatch.com/story/gold-loses-ground-again-as-data-anticipation-builds-2015-03-30)
prices (GCJ5) dropped $16.40 to $1,108.30 an ounce. The dollar
(http://www.marketwatch.com/story/dollar-inches-up-against-euro-yen-as-big-data-week-kicks-off-2015-03-30)(DXY)
was mostly steady against rivals.
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