Wall Street to Open Higher; Oil, Minerals Lead
US stock index futures rose Monday, as investors' concerns over Europe's debt crisis eased, and good news about oil and miners pushed the major indices higher.
The United States has discovered nearly $1 trillion in untapped mineral deposits in Afghanistan, far beyond any previously known reserves and enough to fundamentally alter the Afghan economy and perhaps the Afghan war itself, according to senior American government officials quoted by the New York Times.
Miners advanced along with metals futures in London, with Frensilloand Anglo Americanshares both up.
BP shares were down 3.5 percent on news that the cost to clean up the oil spill in the Gulf of Mexico has spiraled to nearly $1.6 billion.
On Monday, the company’s board members will decide whether they will pay their quarterly dividend.
On Wednesday, BP executives at the firm are set to meet with President Barack Obama, who is outlining a plan to legally compel the firm to create an escrow accountto compensate businesses and individuals for their losses from the oil spill in the Gulf of Mexico.
In deal news, Cablevision Systems confirmed its $1.37 billion purchase of Bresnan Communications, an independent operator in the Rocky Mountain region. The fifth-largest cable operator also said it plans a share buyback worth up to $500 million. Shares edged higher in light premarket trading.
AT&T blamed computer hackers for the release last week of email addresses for iPad users. Shares edged higher premarket.
And Home Depot shares edged higher after Citigroup raised its view on the home improvement retailer. Citi said Home Depot's earnings should improve due to improved expense leverage, share repurchases and higher margins.
European shares started the new week on a bright note Monday, hitting a four-week high, with investor confidence building over the global economic recovery. Banks and miners rose on the positive sentiment, and as well as insurers.
The euro rose on Monday after a burst of short-covering lifted the single currency above $1.22 and further away from a four-year low.
Greece’s Prime Minister George Papandreou told a meeting of top bankers he would not step down in light of his country's sovereign debt crisis, but would do what was needed to restore the country’s economic health.
Asian stocks rose to a one-month high on Monday, led by a rally in the technology sector, after semiconductor chipmakers last week gave positive news about demand. The Nikkei jumped 1.8 percent, climbing 174.6 points to 9,879.85, closing near a key resistance level.
Oil rose to approximately $75 per barrel on expectations that U.S. economic growth will boost fuel demand.
On Friday, oil fell 2.3 percent after U.S. retail sales decreased 1.2 percent in May, the biggest drop since September.
There are no major economic data announcements today.
The corporate earnings calendar is light, with Lay-Z-boy , Rentrak, MDSand Korn/Ferry expected to release their latest financial results.
The Agricultural Bank of China is seeking to raise more than $23 billion through a dual Hong Kong and Shanghai listing, putting it on course to be the world's biggest IPO.