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U.S. stock-index futures pointed to a modestly higher open on Monday, as a rise in the price of crude oil lifted energy stocks, though uncertainty remained across a variety of geopolitical issues.
How are the main benchmarks performing?
Dow Jones Industrial Average futures rose 68 points, or 0.3%, to 24,300, while S&P 500 futures rose 7.65 points, or 0.3%, to 2,670.25. Nasdaq-100 futures gained 36 points, or 0.5%, to 6,810.25.
On Friday, the Dow Jones Industrial Average rose 332.36 points, or 1.4%, to end at 24,262.51, after an earlier drop of about 150 points. The blue-chip average logged its biggest daily climb since April 10, according to FactSet data. However, the average has struggled lately, falling in nine of the past 13 sessions.
The S&P 500 index rose 33.69 points, or 1.3%, to finish at 2,663.42. The Nasdaq Composite Index rose 121.47 points, or 1.7%. The Dow and S&P each slipped 0.2% last week, and the Nasdaq rose 1.3%.
What’s driving markets?
Oil prices climbed above $70 a barrel on Monday, their highest level since 2014. With crude futures rising, investors were likely to keep a close eye on comments linked to the Iran nuclear deal. U.S. President Donald Trump must decide by next weekend, May 12, whether to abandon the deal. Such a move would trigger a reimposition of economic sanctions on Iran, hampering oil exports from the country and cutting global supply.
Global trade headlines will also be in focus for investors, after a team of U.S. negotiators appeared to garner no deal out of talks with counterparts in Beijing. China state media indicated that talks were positive, and more negotiations would be needed to avoid a trade war, the South China Morning Post reported.
A trio of Fed members are slated to speak on Monday, which could give further clues to the direction of interest rates. Richmond Federal President Tom Barkin is scheduled to speak at George Mason University in Fairfax, Va., at 2 p.m. Eastern Time.
Chicago Federal Reserve Bank President Charles Evans and Dallas Fed President Robert Kaplan will both speak at the 23rd Annual Financial Markets Conference in Amelia Island, Fla., at 3:30 p.m. Eastern.
What are strategists saying?
“It seems that the possible re-escalation of geopolitical risks between U.S. and Iran doesn’t affect market participants’ bias at this time. However, this notion will be put to the test as we draw closer to the deciding May 12 date when Trump has to recertify the JCPOA (Joint Comprehensive Plan of Action) deal so we believe that investors should keep their guard up for the rest of the week,” said Konstantinos Anthis, head of research at ADS Securities, in a note to clients.
Which stocks are in focus?
The first-quarter earnings season remains in focus, though the vast majority of S&P 500 companies have already posted their results.
Tyson Foods Inc. reported quarterly earnings and sales that missed analyst forecasts. Shares fell 3% before the bell.
Sempra Energy unexpectedly reported a drop in its first-quarter revenue. Adjusted earnings also came in below forecasts.
Sysco Corp. rose 1% before the bell after reported earnings that came in above expectations.
Starbucks Corp. rose 2.8% in premarket trading after Nestlé SA said it has reached a deal to market the coffee chain’s consumer and food service products. Starbucks will receive a $7.15 billion upfront payment as part of the deal. Nestlé shares rose 0.8% in Zurich.
Gramercy Property Trust surged 13.4% in premarket after the commercial real-estate asset management company said it would be acquired by Blackstone Group LP in a cash deal valued at $7.6 billion.
Shares of International Flavors & Fragrances Inc. fell over 7% after announcing a $7.1 billion stock-and-cash deal to acquire Israel-based Frutarom Industries, Ltd.
Shares of Berkshire Hathaway Inc. rose modestly after the multinational conglomerate said over the weekend it swung to a rare loss in the first quarter due to lower insurance premiums and an accounting rule change.
At the Berkshire shareholder meeting on Saturday, chairman Warren Buffett commented on a range of topics. He applauded Apple Inc.’s share buybacks, defended a stake in Wells Fargo & Co. and explained why he doesn’t invest in Microsoft Corp. shares. He said bonds are a ‘terrible investment’ near current yields and cryptocurrencies “will come to bad endings.”
What are other markets doing?
European stocks climbed, while Asian stocks finished mostly higher.
U.S. oil prices rose 70 cents, or 1%, to $70.42 a barrel, while the ICE Dollar Index climbed to a four-month high as oil prices surged. Gold prices were modestly lower at $1,314 an ounce.