U.S. stock futures rose Wednesday, following two days of losses
for the Dow.
Dow Jones Industrial Average futures added 44 points, or 0.3% to
17007. S&P 500 futures rose five points, or 0.3%, to 1978.
Nasdaq-100 futures gained 13 points, or 0.3%, to 4050. Changes in
stock futures don't always accurately predict stock moves after the
opening bell.
Stocks fell Tuesday, with losses evident among small company
stocks. The Dow shed 0.7% to 17055.87 and the S&P 500 declined
0.6% to 1982.77.
For the year, the Dow is now up 2.9% and the S&P 500 has
gained 7.3%, through Tuesday's close. Stock market gains in the
wake of the financial crisis have been chalked up to the Federal
Reserve's easy-money policies, which make other assets appear less
attractive. The Fed is now on track to begin tightening its
monetary policy, with many investors expecting an increase in
interest rates sometime next year.
"Most of the talking points...are all going to be about
[monetary policy] normalization," said Peter Kenny, chief market
strategist at Clearpool Group. "That is going to drive some real
volatility in the market."
At 10 a.m. EDT, a report on new home sales is expected to show a
3.4% increase in August to 426,000.
Recent data has raised doubts about the strength of the housing
market. On Monday, data showed sales of previously owned homes fell
1.8% in August from July, ending four months of gains.
"The lack of trend in the all-important housing market has kept
the market trading in a tentative tone, despite the fact that a lot
of the other economic data we've been getting has been very
constructive," said Mr. Kenny.
Anticipation of an improvement in housing data and the market's
move lower this week both contributed to Wednesday's gain in stock
futures, he said.
European stocks recovered, with the Stoxx Europe 600 index up
0.3%. German business confidence in September dropped to its lowest
level in more than a year, adding to uncertainty about the
eurozone's economic recovery.
Investors also monitored the U.S.-led airstrikes on extremists
in Syria, which included more than 160 missiles and bombs on
targets inside Syria.
The benchmark 10-year Treasury note yield rose to 2.539%.
Treasury yields move inversely with prices.
Citizens Financial Group Inc.'s initial public offering priced
Tuesday at $21.50 a share, below the company's expected range.
Shares are expected to begin trading Wednesday on the New York
Stock Exchange.
Bed Bath & Beyond Inc. shares rose 5.6% premarket after the
home-goods retailer reported a second-quarter profit that beat
expectations.
In commodity markets, crude-oil futures were nearly flat at
$91.56 a barrel. Gold futures fell 0.1% to $1,221.00 an ounce.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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