NEW YORK, Feb 1 — US stock index futures jumped today after better-than-expected data out of China and Germany and as Greece inched closer to a debt deal, but recent market action suggested gains could be ephemeral.
* Volatility was seen persisting, with low trading volume and mixed corporate earnings adding to the uncertainty.
* China’s factory sector expanded slightly in January, confounding expectations for a contraction and supporting hopes the world’s second biggest economy will avoid a hard landing.
* Germany recorded its first rise in manufacturing output in seven months.
* Greek Finance Minister Evangelos Venizelos said talks between Greece and its private creditors were “one formal step away” from a deal needed to avoid a messy default.
* Banks continued a trend of rallying on signs of euro zone progress. US-traded shares Deutsche Bank climbed 2.4 per cent to US$43.70 (RM132.84) while Citigroup Inc rose 1.2 per cent to US$31.10 before the bell.
* The FTSEurofirst 300 index of top European shares rose 1.4 per cent while an index of European banks advanced 2.5 per cent.
* S&P 500 futures rose 11.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 108 points, and Nasdaq 100 futures rose 17.75 points.
* Amazon.com Inc slumped 8.6 per cent to US$177.74 in premarket trading a day after warning of a possible first-quarter loss and posting a steep drop in fourth-quarter profit.
* Earnings continue to be a mixed bag. According to Thomson Reuters data, of the 204 companies in the S&P 500 that have reported results so far, 59.8 per cent topped estimates, tracking below the beat rate at this stage of the earnings season in recent quarters.
* Whirlpool Corp early today reported a drop in sales on weak global demand.
* Aetna Inc posted sharply higher quarterly profit in line with Wall Street’s target early today.
* Marathon Oil Corp also reported results early today.
* Qualcomm Inc was all due to report later today.
* Economic indicators on tap include the January ADP employment report, due at 8:15am EST (1315 GMT). Economists see a gain of 185,000 private sector jobs, a steep fall from 325,000 in December, which included holiday hiring.
* The ISM manufacturing report, also for January, will be released at 10am EST (1500 GMT), and is seen rising at 54.5 from 53.1 in December.
* Wall Street closed its best month since October on a flat note yesterday, pressured by weaker-than-expected economic reports yesterday, including on consumer confidence and home prices, pressured sentiment. — Reuters
