Stock Futures Rise as Earnings Season Begins; Dell Advances
NEW YORK ( TheStreet) -- Stock futures were drifting higher Monday as 10-year Treasury yields eased following a big spike Friday as investors awaited the unofficial kickoff of the second-quarter earnings season and anticipated more information on the Federal Reserve's timing for a wind down in quantitative easing.
Futures for the S&P 500 were rising 8.75 points, or 10.46 points above fair value, to 1,636. Futures for the Dow Jones Industrial Average were adding 69 points, or 88.16 points above fair value, to 15,145. Futures for the Nasdaq were tacking on 18 points, or 18.23 points above fair value, to 2,974.5.
U.S. stocks surged Friday after shaking off early concerns that the strong jobs growth in June might prompt the Federal Reserve to curb the stimulus measures that have fueled equity markets for more than 18 months.
After the report, the 10-year yield spiked to 2.725%, the highest level since August 2011, before showing signs of easing on Monday. Investors have been concerned about a rebound in interest rates before homebuyers and businesses were ready amid signs of the economy getting better and the possibility of reduced Fed support.
Minutes from the Federal Open Market Committee's June 18 to 19 meeting are due out Wednesday, with Federal Reserve Chairman Ben Bernanke scheduled to speak in Boston on the same day. Investors will be watching both events for more clues into the timing of Fed's stimulus tapering and any specific guidelines from which these decisions will be made.
On Monday, Alcoa
A Thomson Reuters report says that of the 22 companies in the S&P 500 that have reported earnings to date for the second quarter, 64% have reported earnings above analyst expectations. This is higher than the long-term average of 63% but below the average over the past four quarters of 67%. Thomson Reuters said that second-quarter earnings in 2013 are expected to grow 2.9% over the same time last year.