Reuters logo
US STOCKS-Futures rise in wake of payrolls, ahead of earnings
July 8, 2013 / 11:32 AM / 4 years ago

US STOCKS-Futures rise in wake of payrolls, ahead of earnings

* Alcoa reports earnings after the close

* Goldman Sachs sees year-end S&P at 1,750

* Futures up: Dow 64 pts, S&P 8.5 pts, Nasdaq 21.50 pts

By Chuck Mikolajczak

NEW YORK, July 8 (Reuters) - U.S. stock index futures rose on Monday, putting the S&P 500 on track for its third straight advance in the wake of Friday’s better-than-expected payrolls reports and ahead of the start of earnings season after the close.

* The benchmark S&P index rose 1 percent in the prior trading session on the strength of the jobs report, although volume was light with many market participants still away after the Independence Day holiday on Thursday.

* Dow component Alcoa Inc kicks off earnings season after the close. The aluminum company is expected to report earnings of 6 cents per share on revenue of $5.83 billion.

* Goldman Sachs analyst Davis Kostin said in a note to clients that rising earnings coupled with stable margins should lift the S&P 500 by 8 percent to the firm’s year-end target of 1,750.

* S&P 500 futures rose 8.5 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 gained 64 points, and Nasdaq 100 futures added 21.50 points.

* Expectations call for S&P 500 earnings growth to rise 2.9 percent in the second quarter from a year ago, while quarterly revenue is forecast to increase 1.6 percent from a year ago, according to Thomson Reuters data.

* Later in the week, earnings are expected from JPMorgan Chase & Co and Wells Fargo & Co.

* Vivendi is exploring alternative moves to extract cash from its Activision Blizzard unit after failing to sell part of its 61-percent stake in the U.S. video games business, the Financial Times reported on its website on Sunday.

* An activist shareholder who has been battling Alere Inc’s management said investors could more than double the value of their stock if they backed a plan for the health diagnostics and services provider to offload assets.

* European shares rebounded, with investors being prompted to return to the market by a late recovery on Wall Street on Friday on expectations the economy could withstand a cut in U.S. monetary stimulus.

* Asian shares tumbled on Monday as strong U.S. jobs growth increased the chances of the Federal Reserve rolling back its stimulus in coming months, sending the dollar to a three-year high against a basket of major currencies.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below