Futures Edge Higher, but EU Concerns Remain
U.S. stock index futures added to earlier gains Tuesday, struggling to recover from the previous session's declines, but investors remained cautious over the uncertainty in the euro zone.
Stocks initially gained at the open Monday, but added to losses throughout the session to finish down more than 1 percent across the board as initial euphoria over Spain's bank bailoutfizzled and amid ongoing fears over a global economic slowdown.
European shares were mixedin choppy trade with investors changing focus from Spain to Greece ahead of the June 17 general elections, seen as a referendum on the debt-ridden nation's future in the euro zone.
On the economic front, import prices recorded their biggest decline in almost two years as energy and food costs fell 1.0 percent in May, according to the Labor Department. Meanwhile, export prices slipped 0.4 percent, the first drop since December. Economists had expected a decline of 0.1 percent.
Michael Kors soared after the designer clothing and handbag maker beat profit expectations and handed in a full-year earnings and revenue forecast that exceeded estimates.
Texas Instruments was flat after the chipmaker narrowed its second-quarter forecast, saying it expects earnings per share to now fall between 32 cents to 36 cents, from a previous estimate of 30 cents to 38 cents. It projects revenue to fall between $3.28 billion to $3.42 billion, versus a previous estimate of between $3.22 billion to $3.48 billion. Meanwhile, at least three brokerages cut their price target on the firm.
Juniper Networks climbed after the data network equipment maker announced a stock buyback of up to $1 billion.
Apple edged higher after Canaccord Genuity raised its price target on the tech giant to $800 from $775. The upgrade comes a day after Apple's annual Worldwide Developers Conferencelargely failed to impress investors, even after the company unveiled its next-generation MacBook Air and MacBook Pro laptops in addition to a new version of its mobile operating system, iOS 6.
The government is expected to auction $32 billion in 3-year notes, with the results available shortly after 1 pm ET.
And the Treasury’s monthly budget for May is expected at 2pm ET. Economists polled by Briefing.com forecast a $125 billion deficit, against a $57.6 billion deficit in April.
At 11:30 am ET, Fed Governor Daniel Tarullo will give a speech at the Federal Reserve Bank of San Francisco about shadow banking.
The National Federation of Independent Business Small Business Optimism Index for May showed a slight decline amid the political and economic uncertainty.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
TUESDAY: Fed Gov. Tarullo speaks, 3-yr note auction, GM shareholders mtg
WEDNESDAY: Weekly mortgage apps, PPI, retail sales, business inventories, oil inventories, 10-yr note auction, OPEC mtg, Caterpillar shareholders mtg, Dimon testifies before Senate
THURSDAY: CPI, jobless claims, current account, 30-yr bond auction, AOL shareholders mtg; Earnings from Kroger, Smithfield Foods, Pier 1 Imports
FRIDAY: Empire state mfg survey, treasury int'l capital, industrial production, consumer sentiment, credit card default rates reported, quadruple witching
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