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US STOCKS-Futures rally 1 percent on debt ceiling deal
August 1, 2011 / 11:10 AM / 6 years ago

US STOCKS-Futures rally 1 percent on debt ceiling deal

 * Gold prices tumble while crude oil gains
 * Humana earnings rise, raises full-year profit view
 * Loews profit misses estimates
 * Futures up: Dow 182 pts, S&P 19.5 pts, Nasdaq 28.25 pts
 * For up-to-the-minute market news see [STXNEWS/US]
 By Ryan Vlastelica
 NEW YORK, Aug 1 (Reuters) - U.S. stock index futures surged more than 1 percent on Monday on relief over a deal in Washington to raise the debt ceiling, avoiding an unprecedented default.
 * Lawmakers were expected to vote on Monday on the White House-backed agreement, which includes budget cuts of $2.4 trillion. The deal was expected to pass the Democratic-led Senate, but it faces tougher opposition in the U.S. House of Representatives, where both conservative Tea Party supporters and liberal lawmakers have criticized it. For details, see [ID:nN1E76U0F5]
 * Even though a default was considered unlikely by many investors, equities grew increasingly volatile as Washington was at a stalemate. Wall Street ended its worst week in a year last week.
 * Gold GCZ1, seen as a safe haven in times of economic uncertainty, fell 0.7 percent following the deal, while U.S. crude oil CLc1 climbed 1.2 percent.
 * Even with a deal, many investors remained concerned about a possible downgrade of the United States' AAA sovereign debt rating. Some analysts said Monday's rally in futures could be short-lived. The FTSEurofirst 300 .FTEU3 index of top shares was up 0.8 percent. [ID:nL6E7J10BR]
 * S&P 500 futures SPc1 rose 19.5 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 DJc1 soared 182 points, and Nasdaq 100 futures NDc1 jumped 28.25 points.
 * Humana Inc (HUM.N) reported adjusted second-quarter earnings that rose from the prior year and raised its full-year profit view. [ID:nL3E7J11R2]
 * Loews Corp (L.N) posted quarterly profits below estimates as the U.S. conglomerate was hit by higher catastrophe losses and lower income from its biggest holding, CNA Financial (CNA.N). [ID:nL3E7J11OX]
 * Also, Allstate Corp (ALL.N) recorded a second-quarter loss as its catastrophe losses soared 268 percent. [ID:nL3E7J11S7]
 * Economic indicators on tap include June construction spending and July ISM manufacturing data, which is seen edging lower from the previous month. July's non-farm payroll number, due Friday, will also be a focus for investors.
 * HSBC Holding Plc (HSBA.L)HBC.N reported a surprise first-half profit and said it would cut 30,000 jobs as it retreats from countries where it is struggling to compete. U.S.-listed shares of the bank rose 5 percent to $51.33 in premarket trading. [ID:nL3E7J11ER]
 * Stocks ended their worst week in a year on Friday on the political logjam in Washington over the debt ceiling.   (Editing by Jeffrey Benkoe)       

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