Ford gains premarket after news of job cuts
U.S. stock futures inched higher Tuesday, as analysts highlighted reasons why the S&P 500 could keep climbing after the prior session's record close above 2,400.
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S&P 500 futures edged up by 1.85 points, or 0.1%, to 2,400.25, while Dow Jones Industrial Average futures gained 36 points, or 0.2%, to 20,966. Nasdaq-100 futures added 6 points, or 0.1%, to 5,707.25.
On Monday, the S&P and Nasdaq Composite both gained 0.5% and achieved all-time closing highs (http://www.marketwatch.com/story/us-stocks-poised-for-higher-open-as-saudi-russia-surprise-lifts-oil-prices-2017-05-15). Meanwhile, the Dow tacked on 0.4% and finished within striking distance of its record close of March 1.
Appetite for credit-related funds like the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has been "a necessary ingredient" for the S&P 500's advance, and so it's bullish to see that ETF trending higher, said Frank Cappelleri, a technical analyst at Instinet.
"Seeing the HYG begin to diverge in a material way would change our mind, but that is not the case yet," Cappelleri wrote in a note.
Other markets: Oil futures rose about 0.5%, stretching their week-to-date gain to nearly 3%. Expectations that the Organization of the Petroleum Exporting Countries will extend production cuts until early next year continue to boost trading sentiment (http://www.marketwatch.com/story/oil-prices-add-to-gains-with-investors-cheered-by-opec-news-2017-05-16).
European stocks (http://www.marketwatch.com/story/germanys-dax-eases-from-record-high-as-auto-shares-fall-euro-retakes-110-2017-05-16) mostly moved lower, while Asian markets largely closed higher (http://www.marketwatch.com/story/mixed-bag-for-asian-stocks-as-nikkei-gets-back-on-track-2017-05-15).
Read:Why stock-market investors are falling back in love with Europe (http://www.marketwatch.com/story/why-stock-markets-investors-are-finding-lamour-en-europe-2017-05-15)
Gold futures gained, as a key dollar index lost ground. Some analysts are blaming the buck's drop to a six-month low (http://www.marketwatch.com/story/dollar-slides-to-6-month-low-as-worries-about-trump-return-2017-05-16) on worries about President Donald Trump sharing classified information with Russia (http://www.marketwatch.com/story/trump-revealed-sensitive-intel-to-russians-us-officials-say-2017-05-15).
Economic news: An April report on U.S. housing starts and building permits is slated to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting 1.259 million starts.
At 9:15 a.m. Eastern, April releases for industrial production and capacity utilization are due, and economists expect 0.5% growth and a reading of 76.3%, respectively.
No Federal Reserve officials are expected to deliver speeches on Tuesday.
Individual movers: Shares in Ford Motor Co.(F) traded 0.9% higher in premarket action following news the auto maker is planning substantial cuts to its global workforce (http://www.marketwatch.com/story/ford-plans-to-slash-about-10-of-its-global-workforce-2017-05-15) amid a drive to boost profits and address Ford's sliding stock price.
Snap Inc.(SNAP) gained 1.6% premarket after billionaire investor George Soros's hedge fund disclosed a stake (http://www.marketwatch.com/story/soros-places-big-bet-on-snap-dumps-amazon-stake-2017-05-15) in the Snapchat parent, and Etsy Inc.(ETSY) advanced 6.7% in thin trading in the wake of two private-equity firms revealing they've bet (http://www.marketwatch.com/story/etsy-shares-jump-after-private-equity-firms-disclose-stake-2017-05-15) on the online marketplace for handmade products.
Tesla Inc.(TSLA) was 0.3% higher premarket following news that Lyndon Rive, head of the SolarCity business, will leave Tesla next month (http://www.marketwatch.com/story/solarcity-ceo-lyndon-rive-to-leave-tesla-report-2017-05-15), less than a year after the solar-power outfit was acquired by the maker of electric cars.
Home Depot Inc.(HD) gained 1.4% premarket after the home-improvement retailer's quarterly earnings topped Wall Street's estimates (http://www.marketwatch.com/story/home-depot-shares-jump-2-premarket-after-company-beats-earnings-estimates-raises-outlook-2017-05-16).
Staples Inc.(SPLS) rose 3.5% ahead of the open after the seller of office supplies posted same-store sales that beat expectations (http://www.marketwatch.com/story/stapless-stock-jumps-after-same-stores-sales-beat-while-profit-matched-expectations-2017-05-16), while matching forecasts on quarterly profit.
Off-price retailer TJX Cos.(TJX) was also among the companies expected to post earnings before the open.
(END) Dow Jones Newswires
May 16, 2017 07:11 ET (11:11 GMT)