U.S. stock-index futures inched higher today after Beijing's efforts to halt a rout in Chinese stocks finally bore fruit and the U.S. Federal Reserve signaled it might hold off on raising interest rates.
Futures for the Dow Jones Industrial Average climbed 0.9 percent to 17,592, while those for the S&P 500 index gained 1 percent to 2,060. Futures for the Nasdaq 100 index advanced 1.1 percent to 4,395.
U.S. equities declined yesterday in a session marked by a nearly four-hour suspension of trading on the New York Stock Exchange and global growth concerns. The Dow slumped 1.5 percent to 17,515.42 and the S&P 500 lost 1.7 percent to 2,046.68.
In its most drastic step yet to halt a selloff on Chinese stock markets, China's securities regulator banned shareholders with large stakes in listed firms from selling for the next six months. About 30 percent has been knocked off the value of Chinese shares since mid-June, and for some global investors the fear that China's market turmoil will destabilize the global financial system is now a bigger risk than the crisis in Greece.
Fed officials need to see more signs of a strengthening U.S. economy before raising interest rates, according to minutes of the central bank's June policy meeting, at which Greece's debt crisis was cited as a serious concern.
Greece has until midnight today to present European leaders with a plan that includes spending cuts in exchange for fresh aid. Its government extended capital controls through Monday. European leaders will meet on Sunday to decide their response to the proposals. More than six of them made it clear this is Greece’s last chance.
DATA:
New applications for U.S. unemployment insurance benefits rose last week to their highest rate since February, but remained at levels considered consistent with a firming labor market. Initial claims for state unemployment benefits rose 15,000 to a seasonally adjusted 297,000 for the week that ended July 4, the U.S. Department of Labor said today.
MOVERS:
PepsiCo (NYSE:PEP) advanced 2.3 percent after the beverage company posted adjusted second-quarter earnings of $1.32 a share, beating analyst estimates of $1.24 a share.
Walgreens Boots Alliance (NASDAQ:WBA), a drugstore chain, added 2.6 percent after its third-quarter profit beat expectations.
Alcoa (NYSE:AA) slipped 0.5 percent. The aluminum producer unofficially kicked off the second-quarter earnings season yesterday, with an after-hours earnings report that beat analysts’ expectations on sales.
WD-40 (NASDAQ:WDFC) fell 5.4 percent after the specialty-chemicals firm reported earnings that missed Wall Street’s forecasts.
MasterCard (NYSE:MA) rose 1.2 percent ahead of the bell, shaking off news that the EU filed antitrust charges against the credit-card company, claiming it artificially raised the cost of card payments within the EU.
Yahoo! Inc. (NASDAQ:YHOO) advanced 2.4 percent after saying it is rolling out a new fantasy-sports service designed for use on mobile devices.
COMMODITIES:
Crude oil snapped a five-session losing run and jumped 2.4 percent higher to $52.92 a barrel.
Spot gold was up 0.4 percent at $1,162.56 an ounce, while U.S. gold futures for August delivery were down $1.60 an ounce at $1,161.90.