Durable-goods order drop by 1.1% in May
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U.S. stocks were set to kick off the week on sound footing Monday, with futures rising alongside a rally in oil prices.
The reaction to weaker-than-expected durable-goods orders was largely muted in equity-index futures, though both the dollar and Treasury yields declined.
Durable-goods orders (http://www.marketwatch.com/story/orders-for-durable-goods-backslide-again-2017-06-26) slipped 1.1% last month following a similar drop in April, disappointing economists who expected a smaller decline.
Futures for the Dow Jones Industrial Average rose 62 points, or 0.3%, to 21,401, while those for the S&P 500 index added 6.6 points, or 0.3%, to 2,441.5. Futures for the Nasdaq-100 index climbed 27 points, or 0.5%, to 5,840.
The upbeat mood premarket comes after stocks finished mostly higher on Friday (http://www.marketwatch.com/story/us-stock-futures-hunt-for-a-catalyst-with-nasdaq-poised-for-a-weekly-win-2017-06-23). In that session, investors scooped up energy shares, battered after crude oil prices dropped to a 10-month low earlier in the week. The S&P 500 ended 0.2% higher, and the Nasdaq Composite Index climbed 0.5%, but the Dow average ended marginally lower.
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On Monday, energy-related companies continued to perform well, tracking a modest jump in oil prices (http://www.marketwatch.com/story/oil-prices-up-1-rising-for-third-session-in-a-row-2017-06-26). Shares of Chesapeake Energy Corp.(CHK) climbed 1.8% premarket, while ConocoPhillips(COP) added 1.7% and Exxon Mobil Corp.(XOM) put on 0.4%.
Other stock movers: Shares of Yum! Brands Inc.(YUM) advanced 1.8% before the bell after Australian company Collins Foods Ltd. (CKF.AU) said it is buying 28 KFC restaurants from the fast food chain operator (http://www.marketwatch.com/story/yum-brands-rises-18-premarket-after-sale-of-28-kfc-outlets-to-collins-foods-2017-06-26).
Facebook Inc.(FB) inched 0.2% higher premarket. The social-networking giant is talking to Hollywood studios and agencies about producing TV-quality shows (http://www.marketwatch.com/story/facebook-in-talks-with-hollywood-to-produce-tv-quality-shows-2017-06-26), according to people familiar with the talks.
U.S.-listed shares of Nestle SA(NESN.EB) could also move after news that billionaire activist investor Daniel Loeb's Third Point LLC hedge fund has taken a $3.5 billion stake in the consumer-products giant (http://www.marketwatch.com/story/daniel-loebs-hedge-fund-takes-35b-nestle-stake-2017-06-25). Shares were 3.8% higher in Europe.
Economic news:Orders for durable goods (http://www.marketwatch.com/story/orders-for-durable-goods-backslide-again-2017-06-26) fell by the largest amount in May, dropping for the second month in a row and suggesting that an early-year surge has faded.
The Chicago Fed national activity index fell to negative 0.26 in May from 0.57 in April.
See: MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic).
In central bank news, San Francisco Fed President John Williams said at a speech in Australia that gradual hikes in interest rates are needed to avoid overheating the U.S. economy (http://www.marketwatch.com/story/feds-williams-says-gradual-rate-hikes-are-needed-for-growth-2017-0). Separately at Salzburg in Austria, Fed governor Jerome Powell said he sees room to ease some banking rules in the U.S (http://www.marketwatch.com/story/feds-powell-reiterates-his-call-for-relaxing-some-banking-regulations-2017-06-26).
A quarterly mortgage sentiment survey from Fannie Mae showed U.S. lenders are preparing for tougher times ahead and planning to relax lending standards, according to Reuters.
Other markets:Asian stock markets closed higher (http://www.marketwatch.com/story/asian-markets-gain-thanks-to-tech-stocks-and-commodities-2017-06-25) across the board, helping European stocks open higher as well (http://www.marketwatch.com/story/european-stocks-propelled-higher-by-italian-banks-nestle-shares-2017-06-26).
The dollar trimmed gains against major rivals, especially against the euro, after weaker economic data, trading at $1.1218 compared with $1.1194 late Thursday. The yield on the 10-year Treasury note fell 2 basis points to 2.13%, near its lowest levels since last November. Meanwhile gold stumbled about 1%.
(END) Dow Jones Newswires
June 26, 2017 09:10 ET (13:10 GMT)