Futures Rally Amid Euro Zone Optimism
Futures jumped Monday as French President Nicolas Sarkozy and German Chancellor Angela Merkel meet ahead of a key summit and after Italy's new government unveiled austerity measures.
European stocks added to last week's record gains, amid growing hopes of a sweeping solution to the euro zone debt crisis as French President Nicolas Sarkozy and German Chancellor Angela Merkel meet ahead of Friday’s key summit.
They aim to agree proposals for more coercive budget discipline in the euro zone, likely via treaty change, which they want all 27 EU leaders to approve at Friday's meeting.
Meanwhile, Italy's Prime Minister Mario Monti unveiled a 30 billion euro austerity packageto Italy's parliament to help stem the nation's sovereign debt crisis.
The package aims to raise more than 10 billion euros ($13.4 billion) from a new property tax, impose a new tax on luxury items, crack down on tax evasion and bring forward measures to increase the pension age.
In corporate news, Germany's SAP announced a $3.4 billion cash dealto buy U.S. web-based software company SuccessFactors, joining the scramble among technology firms to offer cloud-computing services to businesses.
Samsung Electronics gained after Apple’s bid to halt U.S. sales of the Korean tech giant's Galaxy line of products was rejected, easing concerns of slowing growth in its telecom business, which generates revenue of $13 billion per quarter.
U.S. metals recycler Commercial Metals rejected billionaire investor Carl Icahn's buyout bid, saying the offer substantially undervalues the company and is "opportunistic."
Among earnings, Dollar General gained after the discount retailer boosted its full-year earnings outlook and posted a profit that topped estimates, helped by strong sales.
On the economic front, the Institute for Supply Management November non-manufacturing index will be released at 10 am ET. Economists polled by Reuters forecast a reading of 53.5 versus 52.9 in October.
And the Commerce Department releases October factory orders data at 10:00am New York time. Economists polled by Reuters said they expect a drop of 0.3 percent compared with a 0.3 percent rise in September.
Elsewhere, China's services sector cooled in November to its weakest growth in three months, an HSBC purchasing managers' index showed on Monday, the latest data portraying an economy slowing quickly and in need of policy support.
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On Tap This Week:
MONDAY: Factory orders, ISM non-mfg index, Fed's Evans speaks; Earnings from Dollar General
TUESDAY: AmEx CEO speaks, GE Capital investor mtg; Earnings from Toll Brothers
WEDNESDAY: Weekly mortgage applications, quarterly services survey, oil inventories, consumer credit
THURSDAY: BoE announcement, ECB announcement, McDonald's sales report, jobless claims, wholesale trade, AT&T CEO speaks; Earnings from Costco, Smithfield Foods
FRIDAY: International trade, consumer sentiment, Greek short selling ban expires, EU summit
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