Stock Market Today: Futures Point to a Rebound as Michael Kors Surges
NEW YORK ( TheStreet) -- After last week's steep selloff that saw the Dow Jones Industrial Average plunge into the red for the year, U.S. stock futures were indicating that the broader market will resume its climb Monday.
Dow futures were gaining 48 points, or 38.63 points above fair value, to 16,464. S&P 500 f utures were rising 6.75 points, or 5.9 points above fair value, to 1,925.25. Nasdaq futures were advancing 10.7 points, or 11.93 points above fair value, to3,884.
U.S. stock markets returned to calm Friday as risk-off sentiment evaporated on a jobs number that was not too cold and not too hot.
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"We believe it's too early to call a top in the market," said Piper Jaffray's technical market strategist Craig Johnson. He said that while broader market SPX violated its rising 50-day moving average last week suggesting that the short-term trend of the market is now lower, its intermediate and long-term uptrends remain intact. The 50-day moving average has been pierced four times over the last three years, and each time has been an "excellent buying opportunity" for investors, Johnson said.
The outlook continued to improve Monday on the surprise central bank rescue of Portugal's Banco Espirito Santo . European markets were nudging higher after the Lisbon government said BES would be split into a good bank and a bad bank. The good bank would be put up for sale for early repayment of a Treasury loan, and junior creditors would be "bailed in" -- meaning it is they, and not senior creditors or taxpayers -- who will take the losses. The rescue will be funded from money left over from Portugal's European Union and International Monetary Fund bailout during the financial crisis, which the country exited earlier this year. BES shares are still suspended from trading.
Global luxury retailer Michael Kors
Sixty-six S&P 500 companies are expected to report this week, including 11 consumer discretionary companies and 10 energy companies. This week's calendar will also highlight the Markit PMI services index for July, June factory orders and the ISM non-manufacturing survey for July on Tuesday, and second-quarter nonfarm business productivity figures on Friday.
Stocks poised for action Monday include Evercore Partners