* Netflix jumps after content deal with DreamWorks
* Smithfield up after shareholder urges break-up
* Terex shares tumble after guidance update
* Futures up: Dow 112 pts, S&P 12 pts, Nasdaq 27 pts
By Rodrigo Campos
NEW YORK, June 17 U.S. stocks were set to rise
at the open on Monday after major indexes on Friday closed their
third negative week in four, with traders focused on
expectations the Federal Reserve will reinforce its commitment
to supporting the economic recovery.
While consensus is building among policy-makers that the
time is nearing for the U.S. central bank to scale down its
quantitative easing, or $85 billion-a-month bond-buying program,
divisions remain over when it will start tapering its bond
Chairman Ben Bernanke said on May 22 during Congressional
testimony that the Fed could reduce the pace of QE in the "next
few meetings," sparking a global bond and stock selloff.
"There's hopes we'll get clarity from the Fed this week,"
said Peter Cardillo, chief market economist at Rockwell Global
Capital in New York.
"The market is beginning to adjust itself to an eventual
trimming from the Fed toward the beginning of next year," he
said. "I think we're headed for more volatility but the market
Volatility in U.S. equities has spiked, with the average
daily range in the Dow industrials near 191 points since
Bernanke's testimony in May. The average for 2013 before that
was just below 110 points.
S&P 500 futures rose 12 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 rose 112
points, and Nasdaq 100 futures added 27 points.
Netflix Inc shares jumped 5.1 percent in premarket
trading after it signed a multi-year deal for original content
with DreamWorks Animation.
Terex Corp tumbled 12.2 percent premarket after the
manufacturer of machinery products updated its earnings
Shares of Smithfield Foods rose 1.4 percent in
premarket trading after large shareholder Starboard urged the
company to break up instead of going forward with a proposed
merger with China's Shuanghui International.
Advanced Micro Devices Inc rose 5.1 percent
premarket after Barron's said prospects are looking better for
the No. 2 maker of microprocessors for personal computers.
Growth in the New York state manufacturing sector picked
back up in June, but the details were less encouraging as new
orders contracted further and measures of employment weakened, a
report from the New York Federal Reserve showed on Monday.
Futures held on to their previous gains after the data.
The National Association of Home Builders/Wells Fargo issues
its June housing market index at 10 a.m. EDT (1400 GMT).
Economists expect a reading of 45, versus 44 in May.