Stock Futures Point to a Rebound
NEW YORK ( TheStreet) -- Stock futures were rising Tuesday after a steep retreat during the previous session. Investors cheered some encouraging data on the eurozone and awaited earnings from companies such as Walt Disney (DIS) and data on the U.S. services sector.
Markit Economics said Tuesday that both manufacturing production and service sector business activity declined in January at the slowest rates since last March, with similar modest rates of decline seen in each sector. The news helped offset downbeat December retail sales data from the eurozone.
Futures for the Dow Jones Industrial Average were rising 48 points, or 74.92 points above fair value, at 13,893. Futures for the S&P 500 were up 5.50 points, or 7.94 points above fair value, at 1499. Futures for the Nasdaq were ahead by 10.50 points, or 12.82 points above fair value, at 2722.
Major U.S. stock averages slumped Monday, dragged down by political uncertainties in Europe and disappointing factory orders here at home.
"Now one day does not make a trend," said Joe Cusick, senior market analyst at optionsXpress, referencing Monday's declines and January's positive returns. Cusick noted that historically if January ends in the green the year typically ends in positive territory. "Actually there have only been four years in the S&Ps when January showed a positive start that the end of year performance was not better than the January return."
At 10 a.m. EST, the ISM Non-Manufacturing Index is forecast by economists to show a dip to 55.2 in January from 56.1 in December.
"The evidence from the regional surveys has been mixed, but the recent easing in the rate at which retail sales are growing implies that the ISM non-manufacturing index fell in January," said Amna Asaf, an economist at Capital Economics. "In addition, an average of the main activity indices of the Richmond and the Dallas Fed services sector surveys has been more downbeat than the ISM index."
Still, Asaf pointed out that the ISM non-manufacturing index could continue to suggest that activity in the largest sectors of the economy expanded in the first month of the new year.
The DAX in Frankfurt was up 0.18% in Tuesday trading and the FTSE in London was up 0.52%.
The Nikkei in Japan settled lower by 1.9%. Hong Kong's Hang Seng slid 2.27%.
Gold for April delivery was up 20 cents at $1,676.60 an ounce at the Comex division of the New York Mercantile Exchange, while March crude oil futures were adding 65 cents at $96.82 a barrel.
The benchmark 10-year Treasury was falling 13/32, raising the yield to 2.006%. The dollar was up 0.10%, according to the U.S. dollar index.
In corporate news, entertainment giant Walt Disney (DIS) is expected by Wall Street analysts Tuesday to report fiscal first-quarter earnings of 76 cents a share on revenue of $11.21 billion after the close. Disney earned 80 cents a share on revenue of $10.8 billion during the year-earlier period. Shares were up 0.83%.