S&P 500 index futures remained little changed on Monday as European Policymakers differed over the size of the sovereign debt losses that private bondholders must accept, but strong earnings news from Caterpillar put a floor for losses.
Caterpillar Inc. (CAT) increased 4.5 percent to $91.30 in premarket trading after the heavy equipment maker had reported a quarterly profit that had topped its estimates on record revenues.
The S&P 500 ended Friday with a third straight week of gains upon optimism that a solution could be reached at a European Union Summit over the weekend. At the end of Sunday’s meeting, European leaders neared a deal bank recapitalization on how to leverage a rescue fund. The leaders were slated to meet once again on Wednesday.
“We assume some deal will be announced in days. That said, this is all about Italy and Spain and by assisting their refinancing needs over the next few years. At the same time major pressure is put on them to get their finances in order,” said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.
S&P 500 futures increased 0.4 point and were in line with fair value, while the Dow Jones industrial average futures increased 12 points. The Nasdaq 100 futures rose 4.25 points.
The diversified manufacturer Eaton Corp. (ETN) reported its earnings that met Wall Street estimates even though it faced a loss on commodity hedge contracts. The stock fell 0.4 percent at $42.10.
Texas Instruments Inc. (TXN) will be reporting its third-quarter earnings later on in the day. Investors are hoping for an improvement in chip demand before the holiday shopping season. Analysts have expected a profit of around 57 cents per share, in comparison to the 71 cents seen a year prior.
U.S. President Barack Obama will also be announcing a series of actions this week to help the economy that will not require congressional approval, which includes a plan to make it easier for homeowners to refinance their mortgages, in accordance to a White House official.
U.S. companies have not planned to significantly increase payrolls over the next six months but neither will they aggressively fire workers, reported by a survey suggesting lackluster job growth.
Resource-related shares will remain in focus, with hey base metals prices increasing after data had showed China’s vast manufacturing sector has picked up modestly in October, snapping a three-month contraction.
Google Inc. (GOOG) has spoken to at least two private equity firms about help in financing a deal to purchase Yahoo Inc’s (YHOO) core business, the Wall Street Journal had reported over the weekend, citing a source.
Netflix Inc. (NFLX) stated that it will launch a subscription service in Ireland and the UK in early 2012.
The Federal Reserve Bank of Chicago releases its National Index for September at 8:30 a.m. EDT. The index has read -0.43 in August, indicating below-historical trend growth.
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