Investing.com - U.S. stock futures pointed to a higher open on Monday, as investors were awaiting the release of a batch of highly anticipated corporate earnings reports to gauge the strength of the global economy.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a gain of 0.2%, S&P 500 futures signaled an increase of 0.2%, while the Nasdaq 100 futures indicated a 0.4% rise.
U.S. equities suffered sharp losses on Friday, as weaker-than-expected third quarter earnings results from U.S. corporate giants General Electric, Microsoft and McDonald’s sapped investor demand for riskier assets.
Sentiment firmed up slightly on Monday after the center-right Popular Party of Prime Minister Mariano Rajoy increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting financial aid from Spain’s euro zone partners.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation.
Prime Minister Rajoy said Friday he still had not decided whether to request a sovereign bailout.
The comments came at the end of a two-day European Union summit, which ended without any indication on when Spain will formally request a bailout or whether Greece will receive the next tranche of its bailout loan.
Markets may stay subdued ahead of the release later in the week of U.S. data including monthly new home sales, durable goods orders and third-quarter GDP figures.
Investors are also turning their attention to the Federal Reserve's policy meeting on Tuesday and Wednesday after the central bank announced its third round of quantitative easing last month.
In earnings news, global economic bellwether Caterpillar saw shares drop 1.5% in pre-market trade after reporting lower-than-expected third quarter revenue, citing a slowdown in sales in China. The company also cut its full-year earnings outlook.
On the upside, toymaker Hasbro saw shares climb 1.8% after third quarter revenue declined 2.2% to USD1.35 billion, but rose 1% absent the impact of foreign exchange.
Shares in tech giants Yahoo! and Texas Instruments were also in focus, as both were set to release earnings reports after Monday’s closing bell.
Elsewhere, in deal news, oil giant British Petroleum saw shares rise 0.5% after confirming that it sold its 50% stake in Russian oil producer TNK-BP to state-run OAO Rosneft in a deal valued at nearly USD17.1 billion in cash plus 12.84% of Rosneft shares.
Across the Atlantic, European stock markets were little changed, as ongoing uncertainty surrounding Spain’s bailout plan and concerns over weakening corporate earnings weighed on appetite for riskier assets.
The EURO STOXX 50 added 0.2%, France’s CAC 40 was flat, Germany's DAX dipped 0.15%, while Britain's FTSE 100 was little changed.
During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.7%, while Japan’s Nikkei 225 Index ended up 0.1%, as investors digested U.S. company earnings released at the end of last week and assessed the outcome of the European Union summit.
With no data due Monday, investors will an eye on U.S. politics. The third and final U.S. presidential debate takes place Monday evening before elections on November 6.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a gain of 0.2%, S&P 500 futures signaled an increase of 0.2%, while the Nasdaq 100 futures indicated a 0.4% rise.
U.S. equities suffered sharp losses on Friday, as weaker-than-expected third quarter earnings results from U.S. corporate giants General Electric, Microsoft and McDonald’s sapped investor demand for riskier assets.
Sentiment firmed up slightly on Monday after the center-right Popular Party of Prime Minister Mariano Rajoy increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting financial aid from Spain’s euro zone partners.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation.
Prime Minister Rajoy said Friday he still had not decided whether to request a sovereign bailout.
The comments came at the end of a two-day European Union summit, which ended without any indication on when Spain will formally request a bailout or whether Greece will receive the next tranche of its bailout loan.
Markets may stay subdued ahead of the release later in the week of U.S. data including monthly new home sales, durable goods orders and third-quarter GDP figures.
Investors are also turning their attention to the Federal Reserve's policy meeting on Tuesday and Wednesday after the central bank announced its third round of quantitative easing last month.
In earnings news, global economic bellwether Caterpillar saw shares drop 1.5% in pre-market trade after reporting lower-than-expected third quarter revenue, citing a slowdown in sales in China. The company also cut its full-year earnings outlook.
On the upside, toymaker Hasbro saw shares climb 1.8% after third quarter revenue declined 2.2% to USD1.35 billion, but rose 1% absent the impact of foreign exchange.
Shares in tech giants Yahoo! and Texas Instruments were also in focus, as both were set to release earnings reports after Monday’s closing bell.
Elsewhere, in deal news, oil giant British Petroleum saw shares rise 0.5% after confirming that it sold its 50% stake in Russian oil producer TNK-BP to state-run OAO Rosneft in a deal valued at nearly USD17.1 billion in cash plus 12.84% of Rosneft shares.
Across the Atlantic, European stock markets were little changed, as ongoing uncertainty surrounding Spain’s bailout plan and concerns over weakening corporate earnings weighed on appetite for riskier assets.
The EURO STOXX 50 added 0.2%, France’s CAC 40 was flat, Germany's DAX dipped 0.15%, while Britain's FTSE 100 was little changed.
During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.7%, while Japan’s Nikkei 225 Index ended up 0.1%, as investors digested U.S. company earnings released at the end of last week and assessed the outcome of the European Union summit.
With no data due Monday, investors will an eye on U.S. politics. The third and final U.S. presidential debate takes place Monday evening before elections on November 6.