REFILE-US STOCKS-Futures higher but volatility seen

Tue Jun 12, 2012 7:23am EDT

* Trading seen volatile ahead of Greece elections
    * European share higher, but investors seek defensives
    * JPMorgan execs knew about risky London practices: WSJ
    * Futures up: Dow 76 pts, S&P 6.7 pts, Nasdaq 14.5 pts

    By Ryan Vlastelica	
    NEW YORK, June 12 (Reuters) - U.S. stock index futures were
higher on Tuesday, rebounding from Monday's late-day equities
sell-off as investors continued to digest a bailout plan for
Spanish banks.	
    * Trading was expected to be volatile throughout the
session, with trading volumes light and Wall Street taking its
cue from Europe. On Monday, the first trading day after the aid
package was announced, shares rallied early in the session
before steadily losing ground throughout the session, ending
about 1 percent lower.	
    * While the plan did ease some concerns about the region,
the June 17 election in Greece is still viewed as a major
headwind that could result in the country leaving the euro zone.
European shares were higher, led by defensive names.	
    * U.S. equities have been closely correlated to developments
in Europe's financial crisis on concerns about how it might
impact global growth prospects. In addition, there have been few
domestic factors to serve as possible catalysts. 	
    * Recent U.S. economic indicators, most notably the May
payroll report, have pointed to anemic growth, while data from
China has also been sluggish. The S&P 500 is down 7 percent in
the second quarter.	
    * S&P 500 futures rose 6.7 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures added 76
points and Nasdaq 100 futures rose 14.5 points.
    * Financial, material and energy shares are seen by analysts
as continuing to be among the most volatile, with the three
closely tied to the pace of economic growth and demand.	
    * Also influencing financials, JPMorgan Chase & Co 
has hired an ex-Goldman Sachs energy trader to expand its
customer flow business in Asia amid tightening regulation over
proprietary trading, a source close to the matter said.
 	
    * According to a report in the Wall Street Journal, some
JPMorgan executives and directors were alerted to risky
practices by a team of London-based traders two years before
botched bets cost the bank over $2 billion.	
    * Economic indicators on tap for Tuesday include May federal
budget data.
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.