Black Friday Sale! Save huge on InvestingProGet up to 60% off

US STOCKS-Commodity gains help equity futures rebound

Published 05/24/2011, 08:01 AM
Updated 05/24/2011, 08:04 AM
NDX
-
US500
-
DJI
-
UBSN
-
DBKGn
-
MDT
-
SONY
-
AZO
-
GC
-
HG
-
CL
-

* Bullish Goldman comments lift crude oil, copper prices

* Sony ADRs climb after forecast eases quake concerns

* Futures up: Dow 25 pts, S&P 2.3 pts, Nasdaq 3.25 pts

* For up-to-the-minute market news see [STXNEWS/US] (Adds analyst comment, corporate earnings)

By Ryan Vlastelica

NEW YORK, May 24 (Reuters) - U.S. stock index futures rose on Tuesday, with higher oil prices leading a rebound from the previous session when stocks closed at their lowest in a month.

Rising concerns about the euro-zone debt pressured equities on Monday. While those headwinds remain, markets have steadied following a decline of more than 1 percent. European shares rose 0.25 percent.

Both U.S. crude and Brent futures rose 1.3 percent after Goldman Sachs raised its forecast for oil, citing strong fuel demand growth. For details, see [ID:nL3E7GO0EV]

Copper also rallied, gaining 1.4 percent after Goldman forecast an increase in Chinese purchases in the coming months. Gold prices rose 0.5 percent while the U.S. dollar index <.DXY> fell 0.2 percent.

"Investors are realizing that at the end of the day, there's more demand for commodities than there is supply. That means the long-term trend is higher," said Oliver Pursche, president at Gary Goldberg Financial Services in Suffern, New York. "When there's a short-term selloff, we would take it as an entry point."

U.S.-listed shares of Sony Corp <6758.T> rose 4.8 percent to $27.86 in premarket trading after the electronics maker said this year's operating profit would match last year's, easing worries about the impact of the March earthquake. Those concerns have contributed to recent weakness in the stock. [ID:nL3E7GO018]

S&P 500 futures rose 2.3 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 25 points and Nasdaq 100 futures rose 3.25 points.

In an expanding investigation into mortgage operations, New York's attorney general is seeking information from banks, including JPMorgan Chase & Co , UBS AG and Deutsche Bank AG , according to a person familiar with the matter. [ID:nN23201410]

U.S.-listed shares of Deutsche Bank fell 1.1 percent in light premarket trading.

The U.S. Treasury is expected to sell 15 percent of its stake in American International Group Inc when the insurer prices its stock offering after the market closes. [ID:nN23206224]

AutoZone Inc and Medtronic Inc reported results early Tuesday. Medtronic said it was well positioned for sustainable growth in 2012 and beyond, while AutoZone posted domestic same-store sales growth of 5.3 percent. [ID:nASA027HK] [ID:nASA027H4]

Applied Materials is scheduled to report results later on Tuesday.

April new home sales data, due at 10 a.m. [1400 GMT], are seen rising by the same amount as the previous month. The Federal Reserve Bank of Richmond May indexes on area manufacturing and service sectors will also be released.

(Editing by Kenneth Barry)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.