U.S. Stock Futures Rise As Technology Stocks Extend Bounce
By Tomi Kilgore and Josie Cox
U.S. stock futures rose, with technology stocks poised to extend their bounce and blue chips on course for another record.
European markets were broadly higher as investors shrugged off this weekend's secession referendum in Ukraine.
About 90 minutes ahead of the open, Dow Jones Industrial Average futures added 52 points, or 0.3%, to 16579. On Friday, the Dow rose 32 points, or 0.2%, to close at a record high for the second time this year.
S&P 500 index futures tacked on seven points, or 0.4%, to 1880 and Nasdaq-100 futures rallied 19 points, or 0.5%, to 3567. Changes in stock futures don't always accurately predict stock moves after the opening bell.
The S&P 500 rose Friday to within 0.7% of its April 2 record close of 1890.90.
The technology-heavy Nasdaq Composite and the Russell 2000 index of small-capitalization stocks bounced on Friday, but still suffered weekly losses of 1.3% and 1.9%, respectively.
On Monday, the iShares Russell 2000 exchange traded fund gained 0.5% in premarket trading.
Among other early movers, many of the recently beaten-down technology and consumer Internet stocks were bouncing ahead of the open.
Twitter rallied 3%, after slumping 18% last week. Amazon gained 0.7%, Tesla Motors advanced 1.1% and Facebook rose 0.9%.
Corporate news flow was light, but included more deal news. Pinnacle Foods surged 23% after agreeing to be acquired by Hillshire Brands for roughly $4.3 billion in cash and stock. Hillshire's stock ran up 6.2%.
There were no major economic data scheduled for release early Monday. So investors will be looking ahead to data on retail sales, wholesale and retail inflation, industrial production, consumer sentiment and on the housing market later this week.
The yield on the 10-year Treasury note edged up to 2.645% from 2.621% late Friday.
In Europe, the Stoxx Europe 600 climbed 0.6%, and was headed for the highest close since January 2008.
Pro-Russian separatists in eastern Ukraine declared victory in Sunday's secession referendum, ratcheting up tensions between the West and Moscow. Russia said it would respect the vote and hopes for a "civilized implementation" of the results. Meanwhile, the West and Ukraine's government call the referendum illegitimate.
"It seems to be a bit of a trend these days that headlines come out over the weekend and come Monday the impact on the market is very limited," said Ian Williams, economist and strategist at brokerage Peel Hunt. "Macro implications of the latest developments are of course potentially harmful, but the market seems to have priced in everything. It's just been going on for too long."
Germany's DAX 30 index gained 1%, France's CAC 40 tacked on 0.2% and the U.K.'sFTSE 100 rose 0.4%.
Crude oil futures gained 0.5% to $100.48 a barrel, while gold futures tacked on 0.7% to $1,296.70 an ounce. The dollar inched higher against the euro and the yen.
Asian markets were mixed. China's Shanghai Composite shot up 2.1% to a two-week high after the country's State Council said it would move toward less regulated capital markets. Japan's Nikkei Stock Average lost 0.4% after data showing a sharp drop in the current account surplus.
Write to Tomi Kilgore at email@example.com and Josie Cox at firstname.lastname@example.org
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