Stocks Look to Rebound from Selloff
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Stock-index futures pointed to a modest rebound for Wall Street following the selloff in the last session as traders cautiously eyed developments from Europe.
As of 8:33 a.m. ET, Dow Jones Industrial Average futures climbed 66 points to 12375, S&P 500 futures gained 5.5 points to 1306 and Nasdaq 100 futures rose 11.5 points to 2521.
The markets fell more than 1% on Monday as worries swelled about the situation in the embattled eurozone currency bloc. A $125 billion deal to recapitalize Spanish banks proved insufficient to keep the country's borrowing costs from rising to painful levels. They remained elevated on Tuesday, with the benchmark 10-year note yielding 6.6%, a 5.3-percentage point premium to safe-haven German debt. The price of insuring Spanish debt against a default also lurched to yet another record high, according to London-based financial data firm Markit.
Italian yields also remained well above the 6% level, causing fears that either country could lose access to borrowing on private markets. The Greek election that is likely to seal the country's fate in the eurozone is also set to take place on Sunday. As a result, many trades said they remained cautious to make big bets with so much potential volatility on the horizon.
On the economic front, a report from the Labor Department showed U.S. import prices fell 1% in May as expected, while export prices fell by 0.4%, more than the 0.1% decline expected. Both are forecast to have cooled down over the month of May. Later in the day, the Treasury Department is set to release the Federal Budget for May.
Energy futures were little changed after sustaining heavy losses in the last session. The benchmark crude oil contract traded in New York dipped 32 cents, or 0.41%, to $82.36 a barrel. Wholesale New York Harbor gasoline fell 0.32% to $2.648 a gallon.
In metals, gold slid $4.60, or 0.29%, to $1,592 a troy ounce.
The Euro Stoxx 50 rose 0.5% to 2148, the English FTSE 100 gained 0.36% to 5452 and the German DAX climbed 0.47% to 6170.
In Asia, the Japanese Nikkei 225 sold off by 1% to 8537 and the Chinese Hang Seng edged lower by 0.43% to 18873.