U.S. index futures rose, reversing earlier losses and signaling the first gain in four days for the Standard & Poor’s 500 Index.
Alcoa Inc. unofficially kicks off the reporting season after markets close today. JPMorgan Chase, Intel Corp. and Citigroup Inc. are among 11 companies scheduled to post quarterly results this week. Analysts estimate profits for S&P 500 members fell 6.7 percent in the fourth quarter of 2015.
March contracts on the S&P 500 gained 0.6 percent to 1,922.75 at 9:14 a.m. in London, after an earlier decline of as much as 0.9 percent. Contracts on the Dow Jones Industrial Average added 67 points, or 0.4 percent, to 16,302.
The new year brought volatility, anxiety about global growth and the worst start on record for equities both in the U.S. and globally. The S&P 500 fell on Friday, capping the steepest slide ever over five days to begin a year. A late afternoon selloff extended the benchmark’s weekly decline to 6 percent as concern about China’s slowdown overwhelmed data that showed resilience in the labor market.
Source : Bloomberg
A global stock selloff sparked by world growth concerns may slow in the U.S. as the country’s index futures indicate a calmer market.
Those fears sent American equities yesterday to their worst drop since February 2014, led by losses in the year’s biggest winners. Netflix Inc. was one of them. The stock fell in premarket trading, signaling it will extend yesterday’s 7.8 percent retreat. Gilead Sciences Inc. also declined in early trading, while Apple Inc., Facebook Inc. and Yahoo! Inc. lost about 1 percent.
Standard & Poor’s 500 Index contracts expiring in September added 0.1 percent at 10:49 a.m. in London. While declines of yesterday’s magnitude are more common in Asian and European stock markets, the S&P 500 has gone more than three years without a drop of more than 10 percent, the longest stretch since 2004.
China today released its weakest manufacturing data since the global financial crisis, which accelerated losses in riskier assets. Worries about the world economy had already been intensifying after China devalued its currency last week.
American manufacturing will be in the spotlight today. An August factory report is due at 9:45 a.m. New York time.
Futures on the Dow Jones Industrial Average lost 17 points to 16,902.