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US STOCKS-Wall Street poised for rebound after selloff
June 12, 2013 / 1:10 PM / 5 years ago

US STOCKS-Wall Street poised for rebound after selloff

* Central bank policy to remain in focus

* Freeport-McMoRan down after force majeure on mine

* Celgene up on share repurchase program

* Futures up: Dow 78 pts, S&P 7.4 pts, Nasdaq 9.25 pts

By Leah Schnurr

NEW YORK, June 12 (Reuters) - Wall Street was poised to open higher on Wednesday, recovering after a selloff in the previous session, even as questions lingered over how soon central banks will begin to scale back supportive measures.

The benchmark S&P 500 fell 1 percent on Tuesday in volatile trading after Japan’s central bank disappointed markets by holding its monetary policy steady.

The lack of further action kindled unease over when the ultra-loose policy put in place by global central banks will be wound down, particularly by the Federal Reserve.

The monetary efforts to boost the economic recovery have been a pillar of the rally in U.S. equities this year, and uncertainty over when the measures will be reined in has prompted investors to unwind trades built around such support.

Markets regained some footing on Wednesday, with the dollar recovering and European shares rising. Treasuries prices turned lower after earlier edging up.

“I think in general the tone is a little more constructive,” said Art Hogan, managing director at Lazard Capital Markets in New York.

Some investors are preparing for the possibility the Fed could slow the pace of its $85 billion-a-month bond purchase program by the end of the year, which means the market is likely in for a gradual consolidation, Hogan said.

“My guess is by the time we get the tapering, the market will have discounted that event and it’s not going to be something that causes a selloff,” said Hogan.

S&P 500 futures rose 7.4 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 78 points, and Nasdaq 100 futures added 9.25 points.

Freeport-McMoRan Copper & Gold fell 2.4 percent to $29.60 after declaring force majeure on a mine in Indonesia, freeing itself from obligations to deliver copper concentrate due to a production halt following an accident.

Celgene Corp rose 1.9 percent to $121.00 in light premarket trading after the company announced an additional $3-billion share repurchase program.

First Solar tumbled 5.7 percent to $49.31, a day after the company reaffirmed its 2013 guidance and announced an 8.5 million share offering.

Cooper Tire & Rubber Co surged more than 40 percent after India’s Apollo Tyres Ltd said it would buy the company for about $2.5 billion. Cooper Tire shot up 40.3 percent to $34.45.

On the economic front, another surge in interest rates last week pushed prospective U.S. homebuyers to act as demand for applications for mortgages rose for the first time in a month.

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