WASHINGTON (Alliance News) - Trading in the major US index futures suggests that Wall Street stocks may open notably higher on Monday. Global cues are positive, with Asian stocks closing mostly higher, while the European markets are also seeing strength. Crude oil prices are weaker as supply concerns ease and gold prices are also lower due to rise in risk appetite. The domestic markets could sustain the early momentum if Citi turns in encouraging quarterly results, suggesting a robust season for bank earnings. Although the day's economic calendar is fairly empty, several first-tier events/reports are due for the remaining sessions of the week.
At 6:15 am ET, the Dow futures are rising 58 points, the S&P 500 futures are moving up 6.50 points and the Nasdaq 100 futures are adding 19.50 points.
US stocks reversed course in the week ended July 11th, as overbought fears and signs of troubles brewing in the banking system of Portugal pushed traders to the defensive.
On the economic front, consumer, manufacturing and housing market indicators along with Federal Reserve Chair Janet Yellen's semi-annual monetary policy testimony to Congress are among the closely watched economic events of the unfolding week. Traders could focus on the Commerce Department's retail sales report for June, the results of the manufacturing surveys for July by the New York Federal Reserve and the Philadelphia Federal Reserve, the Commerce Department's housing starts report for June, the National Association of Home Builders' housing market index for July, the jobless claims report, the Federal Reserve's industrial production report for June and preliminary results of the consumer sentiment survey for July by Reuters and the University of Michigan.
The Commerce Department's business inventories report for May, the Labor Department's import and export prices report for June, the Labor Department report on producer prices for final demand, the Federal Reserve's Beige Book, the Conference Board's leading economic indicators index for June and some Fed speeches round up the economic events of the week.
In corporate news, SkyWest (SKYW) reported a 1.4% drop in revenue passenger miles and a 2.5% decline in available seat miles for June. Load factor rose 0.9 percentage points to 84.6%.
Ryder System (R) said its board approved a 3 cents increase in its regular quarterly dividend to 37 cents per share.
Allergan (AGN) recommended that its shareholders take no action in connection with Pershing Square's request to call a special meeting of stockholders to remove a majority of the company's existing directors in connections with Valeant Pharma's (VRX) unsolicited offer to buy all outstanding shares of Allergan in a cash and stock deal.
Noble Corp. (NE) announced that its board has approved the spin-off of its subsidiary Paragon Offshore through a pro rata distribution of an aggregate of 84.75 million Paragon ordinary shares to the holders of Noble ordinary shares. Following the distribution of Paragon ordinary shares, Paragon will be a separately traded public company and would be listed on the NYSE under the ticker symbol 'PGN.'
Most Asian markets advanced, tracking the recovery by US stocks last Friday.
The Japanese market rode on the back of the weakness of the yen, which retreated in reaction to the rise in appetite. The Nikkei 225 average opened higher and moved sideways until late trading. Subsequently, the average rose sharply before moving sideways once again. The index ended up 132.78 points or 0.88% at 15,297. Most sectors advanced, with the exception of some defensive stocks. Sumitomo Dainippon Pharma, Toho, Konami, NEC and Yaskawa Electric were among the biggest gainers of the session.
Australia's All Ordinaries also hovered above the unchanged line throughout the session before closing up 21.20 points or 0.39% at 5,496. The market witnessed broad based strength, with only utility stocks bucking the uptrend.
China's Shanghai Composite Index ended 19.69 points or 0.96% higher at 2,067 and Hong Kong'sHang Seng Index closed at 23,347, up 113.22 points or 0.49%.
On the economic front, revised estimates released by Japan'sMinistry of Economy, Trade and Industry showed that industrial output rose 0.7% month-over-month in May, bigger than the 0.5% estimates initially. However, output growth slowed from the 2.8% pace recorded in April. Shipments and inventories were also upwardly revised.
European stocks have opened higher and have seen further upside since then on a day light on corporate news.
In corporate news, Shire said it would recommend AbbVie's revised takeover proposal, offering to buy the company for 53.20 pounds per share in cash and stock.
In economic news, Eurozone industrial production declined in May for the second time this year, according to estimates published by Eurostat. Output fell 1.1% from the previous month, reversing a 0.7% rise in April. Economists expected output to decline 1.2%.
UK's business optimism, in terms of expected future activity, employment and investment, came in highest among the G4 economies in June despite weakening global sentiment, the Markit's Global Business Outlook survey based on responses from a panel of 11,000 manufacturing and services companies showed.