The major U.S. index futures are pointing to a higher opening on Wednesday, with markets cheering the Greek parliament's passage of the bill to adopt austerity measures. This could remove some of the overhang surrounding Greece's precarious fiscal situation. That said, the markets have been reacting to expectations of this in the past two sessions. Therefore, we could see some moderation in the buoyancy. The housing data to be released later in the session could also impact sentiment.
U.S. stocks advanced for a second straight day on Tuesday amid optimism concerning Greece successfully navigating through a crucial parliament vote to adopt austerity measures necessary for availing additional financing. Additionally, positive earnings from Nike (NKE), which solidified expectations for strong corporate profit growth, also encouraged traders.
The Dow Industrials added 145.13 points or 1.21 percent before closing at 12,189 and the Nasdaq Composite ended up 41.03 points or 1.53 percent at 2,729, while the S&P 500 Index closed at 1,297, a gain of 16.57 points or 1.29 percent.
Twenty-six of the Dow components closed higher, with Caterpillar (CAT) (up 3.02 percent), Exxon Mobil (XOM) (up 2.19 percent), Microsoft (MSFT) (up 2.38 percent), McDonald's (MCD) (up 2.47 percent), Home Depot (HD) (up 2.44 percent) and Alcoa (AA) (up 2.42 percent) leading the gains.
Among the sector indexes, the NYSE Arca Biotechnology Index and the Dow Jones U.S. Basic Materials Average rose about 1.80 percent each. The NYSE Arca Oil Index gained 2.35 percent compared to a 3.77 percent jump by the Philadelphia Oil Service Index. In the tech space, the NYSE Arca Networking Index, the NYSE Arca Software Index, the NYSE Arca Disk Drive Index and the Philadelphia Semiconductor Index all rose over 1 percent.
With the rebound seen in the past two sessions, the Dow Industrials has climbed back above its 21-day MA (currently at 12,097). On the upside, resistances lie around 12,282, 12,368 (50-day MA) and 12,466. On the downside, the index has strong support around 11,913, the basing area of the recent consolidation phase.
On the economic front, the Conference Board reported that its consumer confidence index fell to a 7-month low of 58.5 in June from 61.7 in May, marking the second straight drop. The present situation index slid 1.7 points to 37.6, while the expectations index declined 4.3 points to 72.4. The individuals saying 'jobs are hard to get' rose 0.3 points, while those saying 'jobs are plentiful' fell 0.5 points.
The S&P/Case-Shiller house price survey for April showed that its 20-city composite house price index fell a seasonally adjusted 0.09 percent month-over-month in April. On an unadjusted basis, prices were up 0.66 percent. The annualized change in the house price index was a negative 3.95 percent.
Currency, Commodity Markets
Crude oil futures are edging up $1.25 to $94.14 a barrel after advancing $2.28 to $92.89 a barrel on Tuesday. An ounce of gold is currently fetching $1,509.10, up $8.90 from the previous session's close of $1,500.20 an ounce. On Tuesday, gold advanced $3.80.
Among currencies, the U.S. dollar is trading at 81.0255 yen compared to the 81.1226 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.4393 compared to yesterday's $1.4372.
Asia
The major Asian markets ended Wednesday's session mostly higher, with the buoyancy seen on Wall Street overnight, positive industrial output data out of Japan and the rebound in commodity prices helping sentiment. Meanwhile, the Chinese market retreated sharply, with the Shanghai Composite receding over 1 percent. Hong Kong's Hang Seng Index ended flat.
Japan's Nikkei 225 average opened notably higher and moved roughly sideways for the rest of the session, closing up 148.28 points or 1.54 percent at 9,797, its b closing level since May 11th. A majority of stocks advanced, with NEC, Japan Tobacco, Kawasaki Heavy Industries, Kansai Electric Power, CSK, Fanuc and Chubu Electric Power among the biggest gainers.
A report released by Japan's Ministry of Economy, Trade and Industry showed that industrial output rose a seasonally adjusted 5.7 percent month-over-month in May. The growth exceeded the 5.5 percent increase expected by economists and marked the second biggest increase on record.
Australia's All Ordinaries hovered in positive territory throughout the session before closing up 56.60 points or 1.25 percent at 4,580. Most sectors, with the exception of defensive telecom and real estate stocks, advanced. Energy, material and healthcare stocks advanced notably.
Europe
The European markets are advancing strongly for a second straight session on Wednesday, with the major averages in the region trading with gains in excess of 1 percent each.
The Greek parliament is set to vote on austerity measures following 3 days of deliberations amid a lot of opposition from the public. The results of the vote are expected around 8 am ET.
On the economic front, French statistical agency INSEE downwardly adjusted its first quarter GDP growth estimate to 0.9 percent from the 1 percent growth estimated initially. Data released by the Bank of England showed that mortgage approvals in the U.K. rose at a slightly slower than expected rate in May. A separate report from the central bank showed that the M4 money supply fell for the eighth straight month.
U.S. Economic Reports
Data on Pending Home Sales, which is a leading indicator of housing market activity released by the National Association of Realtors, is due out at 10 AM ET. A pending sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale. The index is expected to have risen by 2 percent in May.
In April, the index fell 11.6 percent month-over-month, declining to a 7-month of low. Pending home sales declined in all of the regions except the North East, where pending sales rebounded by 1.7 percent. The decline in the headline number was attributed to weather impact and foreclosures.
The Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended June 24th at 10:30 AM ET.
Crude oil stockpiles fell by 1.7 million barrels to 363.8 million barrels in the week ended June 17th. Despite the drop, stockpiles remained above the upper limit of the average range.
Gasoline inventories fell by 0.5 million barrels, dropping to near the upper limit of the average range. Meanwhile, distillate stockpiles rose by 1.2 million barrels and remained in the upper limit of the average range. Refinery capacity utilization averaged 87.1 percent over the four weeks ended June 17th compared to 86.4 percent in the previous four weeks.
Federal Reserve Gov. Sarah Bloom Raskin is due to speak on rebuilding the road to financial stability at the New American Foundation in Washington at 12 pm ET.
Stocks in Focus
ACE (ACE) could be in focus after it announced that it will integrate its two operating units in Malaysia, namely the ACE Synergy Insurance Berhad and Jerneh Insurance Berhad. ACE expects consolidation to be completed in the first quarter of 2012.
Regeneron Pharma (REGN) is likely to see some activity after it said a Bayer unit in Japan has submitted an application to the Japanese Ministry of Health, Labor and Welfare for marketing authorization for EYELEA, a treatment jointly developed by Regeneron and Bayer for the neovascular form of age-related macular degeneration. EYELEA was submitted for approval in the U.S. in February 2011 and in Europe in June 2011.
CELESTICA (CLS) could move in reaction to its announcement that it has completed its previously announced acquisition of the semiconductor equipment contract manufacturing operations of Brooks Automation (BRKS) for $79 million in cash. In conjunction with the sale, Brooks Automation also updated its third quarter and now expects revenues of $181 million to $185 million and adjusted earnings of 33-37 cents per share. The company also said semiconductor bookings have moderated. Analysts estimate earnings of 38 cents per share on revenues of $177.56 million.
Frontier Oil (FTO) may also see some reaction to its announcement that Holly Corp.'s (HOC) shareholders have approved the merger of both companies, which has been structured such that Frontier will be absorbed into a subsidiary of Holly.
Nike (NKE) may gain further ground after it said at an investor meeting that it is increasing its revenue target for 2015 to $28 billion to $30 billion, up from its previous estimate of $27 billion. The company touted Brazil and China as promising regions for its business.
Medtronic (MDT) is also expected to be in focus after it released a statement from its CEO Omar Ishrak in response to an article in the Spine Journal about its recombinant human Bone Morphogenetic protein-2 used in spinal fusion surgeries. Ishrak said data the firm submitted to the FDA support the safe use of the protein for the identified indications.
Progress Software (PRGS) may react to its announcement that its second quarter non-GAAP earnings fell to 38 cents per share from 40 cents per share last year despite revenues rising 5 percent to $134.7 million. The earnings were in line with estimates, while revenues exceeded estimates slightly. For the third quarter, the company expects non-GAAP earnings of 34-36 cents per share on revenues of $133 million to $136 million. The company's guidance trailed the consensus estimates.
Campbell Soup (CPB) could also be in focus after it said it expects to eliminate 770 positions as part of initiatives to reduce costs and improve supply chain efficiency. The company also said it intends to exit the Russian market. In connection with the actions, the company expects to record pre-tax costs of about $75 million, most of which will be recorded in the fourth quarter. The company expects to achieve annual pre-tax savings of about $60 million from fiscal 2012.
General Mills (GIS) may gain ground after it announced a 9 percent increase in its quarterly dividend to $0.305 per share. Separately, the company reported higher fourth quarter earnings and revenues, although it issued below-consensus guidance for the fiscal year 2012.
Sealy (ZZ) is likely to see some activity after it reported second quarter net income from continuing operations of 1 cent per share compared to 3 cents per share last year. Net sales rose 10.6 percent to $321.3 million. The results exceeded expectations.
Google (GOOG) may react to it's the premiere of its "Google+", its social network purportedly developed as a competing offering for the well established Facebook.
BJ's Wholesale (BJ) could gain ground after it announced an agreement to be acquired by affiliates of Leonard Green & Partners and funds advised by CVC Capital Partners for about $2.8 billion in cash.
Bank of America (BAC) may react to its announcement that it has agreed to resolve nearly all of the legacy Countrywide-issued first-lien residential mortgage-backed securitization repurchase exposure. The bank will pay $8.5 billion to settle claims and also provide an additional $5.5 billion in the second quarter for representations and warranties exposure. Due to the settlement, the bank expects to record a loss of 88-93 cents per share, while excluding the charges it expects a profit of 28-33 cents per share compared to the 28 cents per share consensus estimate.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.