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Range-bound U.S. stocks may be set for a positive day, as U.S. stock index futures advanced in early action.
What’s happening
-
Futures on the Dow Jones Industrial Average
YM00,
+0.27%
rose 91 points, or 0.3%, to 32980. -
Futures on the S&P 500
ES00,
+0.33%
gained 13.5 points, or 0.3%, to 4128. -
Futures on the Nasdaq 100
NQ00,
+0.40%
increased 47.75 points, or 0.4%, to 12664.
On Wednesday, the Dow Jones Industrial Average
DJIA,
fell 269 points, or 0.81%, to 32911, the S&P 500
SPX,
declined 45 points, or 1.08%, to 4116, and the Nasdaq Composite
COMP,
dropped 89 points, or 0.73%, to 12086.
The S&P 500 hasn’t traded above 4,177.51 or below 4,073.85 this month.
What’s driving markets
Investors will be positioning ahead of Friday’s U.S. May inflation report, as well as monitoring the latest decision from the European Central Bank.
While no change in interest rates is expected, the 8:30 a.m. Eastern press conference from President Christine Lagarde will be monitored for signs as to whether the ECB will make its first rate hike of the cycle in July, and by what magnitude.
Julian Emanuel, a strategist at Evercore ISI, reduced his year-end S&P 500 index price target to 4,300 from 4,800. He said a decisive move lower in gasoline prices is needed for stocks to push higher.
“A clear break lower in the price of unleaded gasoline, the most important inflation barometer in the mind of the stressed U.S. consumer, catalyzed by geopolitical easing rather than a sharp economic slowdown, is the standout necessary catalyst that could lead to new highs and the conclusion that the 5/20 low was The Bottom rather than A Bottom which could be tested in the weeks ahead,” he said in a note to clients.
Tesla
TSLA,
the electric vehicle leader, rose in premarket trade after UBS upgraded the stock to buy from neutral while leaving the price target of $1,100 unchanged.
