Stock futures up on
upbeat Chinese data; Fed meet eyed
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[November 01, 2016]
By Tanya Agrawal
(Reuters) -
U.S.
stock index futures were higher on Tuesday, helped by upbeat
manufacturing data from China and as investors awaited the outcome of
the two-day Federal Reserve meeting.
Activity in China's manufacturing sector expanded at a faster pace than
expected in October, an official survey showed, adding to views that the
world's second-largest economy is stabilizing thanks to a construction
boom.
Oil edged up from one-month lows, following its largest one-day slide in
more than five weeks, although analysts said the prospect of a more
substantial price recovery was limited. [O/R]
The market is also watching the outcome of the Fed meeting, which begins
later in the day. While traders doubt the Fed will raise interest rates
this week, they will be looking for signs to firm up their expectations
for a hike at the central bank's December meeting.
Chances of a rate hike in December were at around 78 percent, according
to the CME Group's FedWatch Tool.
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Wall Street ended barely changed on Monday as investors digested the
latest large-scale corporate mergers as well as the most recent twist in
a tumultuous U.S. presidential election.
Hillary Clinton held a lead of 5 percentage points over Republican rival
Donald Trump, according to a Reuters/Ipsos opinion poll released on
Monday, down only slightly since the FBI said last week it was reviewing
new emails in its investigation of Clinton ahead of the Nov. 8 election.
The S&P 500 index ended October with a 1.9 percent drop, the third
straight month of decline for the benchmark index and its worst monthly
performance since January. Still, the S&P 500 is up about 4 percent for
the year.
S&P 500 companies looked set to snap a long streak of quarterly earnings
declines after most companies posted a strong set of third-quarter
results. Profits are expected to have risen 3.1 percent, according to
Thomson Reuters I/B/E/S.
Economic data expected on Tuesday includes the Institute for Supply
Management's index of national factory activity, which likely rose to
51.7 in October from 51.5 in the preceding month. The data is expected
at 10 a.m. ET.
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Traders work on the floor of the New York Stock Exchange (NYSE) in
New York City, U.S. October 31, 2016. REUTERS/Brendan McDermid
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Dow component Pfizer was down 2.2 percent at $31 in premarket trading
after the drugmaker's quarterly profit fell below expectations.
Valeant Pharmaceuticals' U.S.-listed shares rose 3.9 percent to $18.55
after Bloomberg reported that the drugmaker's former chief executive and
chief financial officer were at the center of a U.S. criminal probe.
Tenet Healthcare fell 4.6 percent to $18.80 after the hospital
operator reported a lower-than-expected adjusted quarterly profit.
Futures snapshot at 6:50 a.m. ET:
S&P 500 e-minis were up 6.5 points, or 0.31 percent, with 105,192
contracts traded.
Nasdaq 100 e-minis were up 11.75 points, or 0.24 percent, on
volume of 17,140 contracts.
Dow e-minis were up 40 points, or 0.22 percent, with 22,748 contracts
changing hands.
(Reporting by Tanya Agrawal; Editing by Anil D'Silva)
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