Stock futures higher as oil
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[June 26, 2017]
By Tanya Agrawal
(Reuters) - U.S. stock index futures were
higher as oil prices rebounded, while investors awaited economic data
for a reading on the health of the economy.
Oil rose for a third straight session, as speculators took advantage of
last week's drop to seven-month lows, although a relentless increase in
U.S. supply and little evidence of a widespread drop in global
inventories capped gains. [O/R]
The recent drop in oil prices have spurred concerns about low inflation,
which stubbornly remains below the Federal Reserve's 2 percent target
The central bank raised rates this month for the second time this year
and is expected to raise it again. Futures imply only a 50 percent
chance of another rate hike by December.
Fed Chair Janet Yellen speaks on London on Tuesday and investors will
look for any clues to the rate outlook, after mixed views from other Fed
officials in recent days.
On Monday, San Francisco Fed President John Williams said the Fed needs
to raise rates gradually or the economy runs the risk of overheating.
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Traders work on the floor of the New York Stock Exchange shortly
after the closing bell in New York, U.S., June 23, 2017.
Data is expected to show new orders for key U.S.-made capital goods likely rose
slightly in May, with non-defense orders, a closely watched proxy for business
spending plans, probably rising 0.3 percent. The report is due at 8:30 a.m. ET
U.S. stocks ended higher on Friday after a last-minute trading spike, helped by
gains in technology sector, which offset weakness in financial stocks, sending
the Nasdaq higher and giving it a weekly gain for the first time in three weeks.
Shares of Portola Pharmaceuticals were up 4 percent at $58.32 in premarket
trading, after the FDA, on Friday, approved a new oral blood-thinner made by the
Micron was up 1.5 percent at $32.20 after Cowen & Co increased its price target
on the chipmaker's stock.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)
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