(As of 7:10 am PST)
US stock futures see-sawed
premarket with momentum eventually swinging to the upside after a dramatic swing
in oil prices overnight. Crude oil, which was on the decline earlier this
morning is now trading slightly above $30 per barrel after reports that OPEC
and non-OPEC members were considering production cuts to shore up supply issues
and hopefully bring stabilization to prices. The turnaround in oil early this
morning helped US stocks avoid facing sharp declines at the open as investors
traded down an ugly close for Asian markets. The Chinese Shanghai composite index
suffered its worst one day loss since the government removed its circuit
breaker mechanism earlier this year. The Shanghai index was down 6.4% on the
day. Economic data has been light today but mostly positive helping to sustain
early gains. The November reading of the S&P/Case-Shiller home price index
showed prices rising at their fastest pace in 16 months. Additionally, a report
on consumer confidence in January beat expectations. Upbeat earnings reports
are adding to today’s early upside bias. Reports form Proctor & Gamble,
Johnson & Johnson, 3M, DuPont and Sprint all topped analysts’ expectations.
Apple Inc. will be under the spotlight
later this afternoon as the iPhone maker gets set to report quarterly earnings
after the bell today. Lastly, today begins the first day of the FOMC’s two day
policy setting meeting with a statement due out Wednesday afternoon. Expect
volatility to remain high throughout the week on the regular concerns over oil,
China and central bank maneuvering.
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