U.S. Stock Futures Rise on Back of Spain Aid Package, Alcoa Results -- FEC

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Date Posted: 06:00:33 07/10/12 Tue
Author: 10/07/2012 10:16PM (Prince Charles/ProudDad)
Subject:

U.S. Stock Futures Rise on Back of Spain Aid Package, Alcoa Results

U.S. Stock Futures Rise on Back of Spain Aid Package, Alcoa Results
10/07/2012 10:16PM

--Stock futures rise as Spain's aid package boosts sentiment

--Alcoa gains in premarket as earnings, revenue top expectations

--Europe rallies as agreement reached on aid for Spanish banks

--Small business optimism falls; job openings, turnover data on tap

By Tomi Kilgore

NEW YORK--U.S. stock futures rose Tuesday as relief over an agreement reached on an aid package for Spain and Alcoa's (AA) positive reaction to quarterly results helped put investors in an upbeat mood.

Dow Jones Industrial Average futures advanced 46 points, or 0.4%, to 12731.

Standard & Poor's 500-stock index futures gained 3 points, or 0.2%, to 1352 and Nasdaq 100 futures tacked on 9 points, or 0.3%, to 2615. Changes in stock futures do not always accurately predict stock moves after the opening bell.

Shares of Alcoa gained 0.6% in premarket trading after the blue chip aluminum producer reported adjusted earnings and revenue that topped analyst expectations, according to FactSet Research. Since Alcoa is the first Dow component to reveal results, its report is seen as marking the unofficial kick-off of earnings reporting season.

Meanwhile, the National Federation of Independent Business's small-business optimism index fell to 91.4 in June from 94.4 in May, the lowest reading since October and below expectations for a reading of 93.

Also on tap are data from the Labor Department on job openings and labor turnover for May, which is due out at 10 a.m. EDT.

European markets were broadly higher, with the Stoxx Europe 600 rallying 1%, after euro-zone finance ministers agreed to make EUR30 billion in aid available for Spain's banking industry and gave the country an extra year to meet its deficit targets. Spain's IBEX-35 stock index rallied 1.4% and yields on 10-year Spanish bonds dropped below 6.80%.

Also boosting sentiment, U.K. industrial production jumped 1% between May and April, the biggest monthly increase in over two years, and much better than expectations of a 0.2% decline.

Meanwhile, Asian markets fell after data showing China's trade surplus widened in June as import growth slowed more than expected. China's Shanghai Composite slipped 0.3% to a six-month low and Japan's Nikkei Stock Average lost 0.4% to suffer its fourth-consecutive decline.

Crude oil futures slipped 0.2% to $85.84 a barrel, while gold futures tacked on 0.3% to $1593.40 an ounce. The U.S. dollar edged higher against the euro but slipped against the yen.

In other corporate news, Advanced Micro Devices slumped 8.9% after the semiconductor maker cut its second-quarter revenue outlook, citing weaker-than-expected business conditions in China and Europe. The company now expects a decline of 11% from first-quarter levels after previously projecting an increase of 3%, plus or minus three percentage points.

MagicJack VocalTec rallied 14% after the phone services company raised its fiscal second-quarter and full-year earnings and revenue outlook as strong sales have continued despite reduced spending on advertising.

Wolverine Worldwide shed 8.7% after the footwear and apparel maker reported second-quarter earnings and revenue that fell short of expectations, weighed by economic uncertainties in Europe.

Mako Surgical tumbled 40% after the medical device company lowered its 2012 outlook for product sales and procedures, citing a slower-than-expected start to the year.

Write to Tomi Kilgore at tomi.kilgore@dowjones.com

(END) Dow Jones Newswires

July 10, 2012 08:16 ET (12:16 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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