Stock futures boosted by eurozone optimism

The markets await the meeting between the German and French leaders. The Greek Prime Minister is expected to request an extension to fulfill fiscal targets. Spanish borrowing costs decline. Urban Outfitters posts above-consensus quarterly results.

By TheStreet Staff Aug 21, 2012 9:02AM
Updated at 9:02 a.m. ET


By Andrea Tse


Stock futures were firmer Tuesday, pointing to a higher Wall Street higher open, on expectations that meetings between eurozone leaders this week will bring progress on the continent's debt situation.

 

Futures for the Dow Jones Industrial Average ($INDU) were up by 24 points at 13,253. S&P 500 ($INX) futures were up by 2.6 points at 1,417. Futures for the Nasdaq ($COMPX) 100 were rising by more than 7 points to 2,788.

 

On Thursday, German Chancellor Angela Merkel and French President Francois Hollande plan to meet in Berlin.

 

Later this week, Greek Prime Minister Antonis Samaras is expected to request an extension for Greece to fulfill its fiscal objectives as the country works through onerous reforms. Samaras is expected to meet Merkel on Friday in Berlin and Hollande in Paris on Saturday.

 

European markets were getting a lift Tuesday as borrowing costs declined at Spain's auction of shorter-term debt.

 

The FTSE in London was up 0.29% and the DAX in Germany was up 0.35%.

 

In other European developments, Moody's is reporting that troubled southern euro zone nations are benefiting from repair programs there.

 

Major U.S. stock indices halted their ascent Monday as doubts arose about whether the European Central Bank will step in to stabilize the eurozone's sovereign debt markets.

 

"The euro needs a friendly pat on the back from policymakers pretty much every day, or it goes off to sulk," commented Nicholas Colas, chief market strategist, at ConvergEx.

 

No major U.S. economic releases were expected for Tuesday.

 

Minutes from the Federal Reserve's late July meeting will be published Wednesday.

 

"Traders could easily latch on to any section that shows there was a robust debate about further easing," said Dan Greenhaus, chief global strategist at BTIG. "That would leave us in an interesting position heading into the worst month of the year, September … this might the set up for an interesting short trade."

 

On the corporate front consumer products company Urban Outfitters (URBN), the Philadelphia-based specialty fashion apparel retailer, posted above-consensus quarterly results after Monday's closing bell.  

 

Nordson (NDSN), the Westlake, Ohio-based manufacturing technology company, topped Wall Street's expectations for its fiscal third-quarter results and gave a strong revenue outlook for the fourth quarter.  

 

Church & Dwight (CHD) has agreed to buy vitamins and supplements Avid Health for $650 million in cash.

 

Facebook (FB) director Peter Thiel has unloaded on most of his shares in the company following the expiration of restrictions on insider sales. Proceeds from the sales totaled more than $1 billion.

 

Dell (DELL) is slated to report its second-quarter results after the closing bell. Wall Street is expecting earnings of 45 cents a share on revenue of $14.643 billion in the three-month period.

 

October crude oil futures were rising 61 cents at $96.87 a barrel and December gold futures were up $4.90 at $1,627.90 an ounce.

 

The benchmark 10-year Treasury was falling 2/32, raising the yield to 1.819%. The greenback was down 0.47%, according to the dollar index.

 

The Hong Kong Hang Seng index finished down 0.02% and the Nikkei in Japan closed down 0.16%.

 

 

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21Comments
Aug 21, 2012 9:31AM
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POPS,

A Market question for you......  (I KNOW!!!!  But I'm serious)

Is there a "top" that you are looking for / expecting, or are you just planning to ride the wave as long as you can and plan to hop off when needed?

Your opinion, of course, but I'm curious.....  Thanks in advance!

Aug 21, 2012 9:43AM
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Why not ride the market, just keep a trailing stop.    The market will move higher as the money being printed has to go somewhere...  It cannot  go into bonds or CD's as those will depreciate by inflation (what the FED wants).  It will go into things that retain their value, like Stocks, commodities (especially Oil) and Specie, Foreign currency as well, but only for sound money.   Real Estate is too heavily taxed to be considered as an inflation hedge.  

So money flows into stocks.  Companies continue to be profitable, regardless of the economy, as business has discovered they can slash costs by laying off workers the next day.  So if the government raises taxes or increases costs, headcount can be reduced to compensate.   

I think the market can move higher, based upon that alone.
Aug 21, 2012 10:13AM
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Some are guessing or kicking around figures of 13.5K-14.0K for year end close...That's for the DOW.

I'm sure there are pundits like Cramer (maybe not him) that are screaming 15,000 in the near future.

 

The Markets are the Markets.....I feel the S&P and RUT or Wilshire are better indicators of the Economies Health ?? Bar anything like the snivelings of Europe or Asia, which overall can affect us.

 

It's not really about just high spots in the Markets, it's about what you are invested in that counts, if a Company is making money during a recession or recovery,the the Markets may reflect that or they may not?? Walmart and McDonalds have done well over the last 3-4 years; Tobacco has done great;

These are just a few examples..And dividends are are/have been getting more important every day.

 

I may jump off a Stock or Company if I feel it has reached a top and is getting boring.. Or the appreciation has been great enough to sell and diversfy somewhere else.

But market timing; Is a tough animal to rope, and really attempt that very little anymore.

I only make about 125-150 trades per year, sometimes taking profits and re-investing OR culling losers and moving forward......Diversity is the most important key to holding your ground.

Value,Dividends,Growth,some risk and a healthy share of Commodities or commodity related.

Different times,can demand different investments...

I don't always have winners constantly, I try to have a large enough percentage overall to make money....And Markets are indicators, but Companies and Product make the money.

Aug 21, 2012 4:42PM
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Well, like we said last night after the close, today manipulators would come out with guns blazing...After 6 positive weeks, scumbags couldn't wait...Its ok. we need a day like today to climb higher....We started the day with a sucker's rally, we were up about 55, that's when we warned and advised caution....At about 1100 hrs they called for the first wave of selling and at 1300 hrs they accelerated and, thats all she wrote...Oh well, cant go up every day, have to throw this dirt bags a bone every so often....Lets see what happens tomorrow. Today we had a day that reminded us of what's happening outside of WS, horrible economy.
Aug 21, 2012 11:33AM
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They didn't wait long, at 1120 hrs the first call to sell came and we are going down fast....Obviously it is still early but, scumbags already starting to do their thing....Keep cautious...More later.
Aug 21, 2012 1:39PM
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Like we said yesterday, manipulators would be coming out in force today....Well, at 1300 hrs they accelerated the selling, why? Because they can, come on, we've been up 6 weeks in a row, you didn't think crooks would just go away did you? Still over 2 hours to go, see if we can minimize the damage or maybe even pull even...More after the close.
Aug 21, 2012 5:48PM
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LOM......Yes, SLW is a good play in the PM field...

 

On it's 52 week low it has appreciated 50% in recent months..Has 30% more to grow to hit it's high..

Like I say, if "you believe" you should jump...

 

Today SLW up 3+%

           EGO up 5+%....The PGMs are all rising.

Aug 21, 2012 11:24AM
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Mirage....I think you have a problem with your alter ego...Or a psuedo Ghost?? I think this might DEBASE your ideas of our Prez....Still LMAO..

 

Yes, I am looking for a devaluation in the dollar short term...The FED is good at throwing a wrench in..

It's been constant for several months now, around 82-83, think low 80s are doable,maybe even 78-79?

If that is the case, along with China babbling...

Commodities, especially PGMs and our goldminers should do well....That's our bet.

And one is up 6% today.

Aug 21, 2012 10:44AM
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I pretty much agree with Mirage's POV....But I don't mess with FOREX or specie...But do dabble with real estate; Back dooring through mREITS, mainly for the dividends; And they should be good for the next 18 months?? Only other RE is our own personal property...Too many headaches for anything else and we want to enjoy life, not work our azz off anymore. 

Two best performers for the year to date are Home Depot and Phillip Morris, but we own Lowes too.

It has been a laggard and yesterday took a hit that it didn't deserve; Been wanting to get rid of and consolidate more into HD...Now I have to wait a little.

It's all about Companies...Even when they are in the same business..

 

To be be safe....I'll take the mid ground and call the DOW at 13,700-13,750 year end...Even with an election....Because it might get real shook-up in November...? 

Aug 21, 2012 3:19PM
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Yeah a hundred point swing is a little unnerving, but it may not turn all equities into "falling knives"

just the ones that are a little overpriced or overbought. IMO

 

LOM....Silver is still being held down, wait to long and you will be buying 30% appreciation.

Aug 21, 2012 4:40PM
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TOG, Yes, Silver is the far superior PM by percentage since the early 2000s.  Also, from time to time, I get really lucky and find a silver hoard deposited at the bank by LOLs who dont want to take the time to go to a dealer.   What can I say, MRS LOM loves silver jewelry too.   I wonder if JPMorgan finally executed the last of its shorts against silver by now?
Aug 21, 2012 9:19AM
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It seem's to have legs, which makes me feel good....Not even being propped up yet, as many would think or espouse....Wait until they prop it a little here...

 

Maybe the Markets, Companies and Consumer sentiment will make the President look good??

 

Stay tuned....

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