U.S. stock market futures were higher Tuesday, as investors continued
to monitor the European debt crisis and rising bond yields for Spain
and Italy.
Futures for the Dow Jones Industrial Average rose 78 points, or 0.6%,
to 12388. The S&P 500 futures were up 7.75 points, to 1308, while
Nasdaq 100 futures rose 15.50 points, to 2525.50.
Investors are keeping a continued close eye on the European sovereign-
debt crisis. Wall Street stocks tumbled the prior day amid investor
concern about elections in Greece this weekend, a potential bailout
for Cyprus and the details of a Spain bank loan package.
Yields in Spain and Italy shot higher in Europe's afternoon session on
Monday, taking many in the markets by surprise as brief optimism over
Spain's bank deal was replaced by questions and concerns about its
details.
Yields were again on the rise Tuesday, with the yield on Spain's
10-year government bond up 16 basis points to 6.69% and those for
Italy jumping 10 basis points to 6.14%.
The Stoxx Europe 600 index rose 0.2% to 242.50.
"We see a significant risk that 10-year Spanish bond yields could rise
above 7% in the coming days, which returns the ball to the [European
Central Bank's] court," said analysts at Danske Bank in a note to
investors Tuesday. They added that the ECB is unlikely to step in with
any support before the June 17 Greek elections.
If those yields continue higher, fixed-income markets will continue to
get nervous, pushing investors toward German and U.S. bonds, the
analysts said.
On Monday, the Dow Jones Industrial Average slid 142.97 points, or
1.1%, at 12411.23, after a 96-point rise earlier in the session. The
S&P 500 index fell 1.3% and the Nasdaq Composite Index fell 1.7%.
On the data calendar for the U.S., May import prices will be released
at 8:30 a.m. EDT and the Federal Budget will be released at 2 p.m.
EDT.
Within corporate news, Michael Kors Holdings Ltd. (KORS) could be
active. The retailer is expected to report fiscal fourth-quarter
earnings ahead of the opening bell.
In the tech sector, shares of Texas Instruments Inc. (TXN) could be
active after the chip maker narrowed its second-quarter outlook late
Monday.
Seagate Technology Ltd. (STX) could gain. The shares rose after hours
after David Einhorn's Greenlight Capital said it increased its stake
in the hard-drive maker to 23.1 million shares as of June 1 from 14.5
million at March 31.
Juniper Networks Inc. (JNPR) could also be active. The
networking-equipment company unveiled a new program to buy back as
much as $1 billion of stock.
Within other markets, most Asian stocks retreated Tuesday as investors
fretted over Spain's bailout and the Greek election loomed.
Crude oil for July delivery fell 52 cents, or 0.6%, to $82.18 a barrel.
Gold for August delivery fell $6.50, or 0.4%, to $1,590.30.
The euro traded range-bound against the dollar at $1.2510, not far off
a $1.2491 level late in North American trade on Monday.
Write to Barbara Kollmeyer at barbara.kollmeyer@dowjones.com
HOT STOCKS TO WATCH
Among the companies with shares expected to actively trade in
Tuesday's session are Shanda Games Ltd. (GAME), Juniper Networks Inc.
(JNPR) and Majesco Entertainment Co. (COOL).
Shanda Games' first-quarter earnings rose 7.6% as the Chinese game
developer's revenue continued to grow and as margins strengthened.
Shares rose 5.9% to $4.29 after hours as earnings beat analyst
expectations.
Juniper unveiled plans to repurchase up to $1 billion of the company's
stock. Shares were up 1.2% to $16.59 after hours.
Majesco's fiscal second-quarter earnings rose 30% as the videogame
maker saw its bottom line benefit from fewer charges related to
warrants, though revenue and margins declined. Shares slipped 1.1% to
$1.87 after hours as the company also lowered its full-year earnings
estimates.
Watchlist:
Agrium Inc. (AGU) said it expects its earnings for the first half of
the year to be at or near the top-end of its expectations, pointing to
strong results across its crop-input business.
Online jeweler Blue Nile Inc. (NILE) said it hired Julie Yoakum as its
newly titled chief merchandising officer, replacing Senior Vice
President Susan Bell, who is retiring this month.
BioMed Realty Trust Inc. (BMR) has agreed to acquire Granta Park, a
life-science research park in Cambridge, England, for approximately
126.8 million pounds, or $196 million, as the real-estate investment
trust continues to grow its portfolio in large research markets.
DynaVox Inc. (DVOX) has promoted its operating chief, Michelle Heying,
to chief executive officer, effective immediately.
Finisar Corp. (FNSR)'s fiscal fourth-quarter earnings fell 20% as the
telcommunications-equipment provider was hurt by weaker margins and as
weak telecom revenue offset improvement in its data-communications
business.
Sigma Designs Inc. (SIGM) said it has terminated its
shareholder-rights plan and decided to separate the roles of chairman
and chief executive.
Stage Stores Inc.'s (SSI) board approved an 11% increase in the
department-store operator's quarterly dividend.
Texas Instruments Inc. (TXN) narrowed its second-quarter guidance
around its prior midpoint--the first time in about a year the company
has done so as business rebounds from its recent lows.
Write to Nathalie Tadena at nathalie.tadena@dowjones.com
(END) Dow Jones Newswires
June 12, 2012 06:55 ET (10:55 GMT)
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