Futures climb as Greece deal approved
Stock index futures rose on Monday, indicating the S&P 500 would rebound from its biggest loss of the year, as Greece's parliament approved strict financial reforms needed to obtain its latest international bailout package.
The European banking shares index <.SX7P> gained 1.1 percent, led by a 10.1 percent jump in the National Bank of Greece SA
Bank of America Corp
The parliament approved the austerity package, and green lights are flashing because of that, and it's a step in the right direction in terms of Greece getting the second tranche of this money, said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
But the uproar, the social unrest, is something that is probably going to limit gains today.
Even with parliamentary approval, the Greek government remained under pressure to convince a skeptical euro zone that it would stick to the terms of a multi-billion-euro rescue package.
S&P 500 futures rose 9.6 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 rose 83 points, and Nasdaq 100 futures added 16.5 points.
Shares in Asia also moved higher on the Greek agreement.
Apple Inc
Prudential Financial Inc
, the No. 2 U.S. life insurer, hired Bank of America Merrill Lynch to advise on its possible bid for ING Groep NV's
Industrial conglomerate United Technologies Corp
Google is expected to win approval from European regulators, as well as from U.S. antitrust authorities, for its planned $12.5 billion purchase of Motorola Mobility
As earnings season moves into its final stages, 51 companies in the S&P 500 are scheduled to report results this week. According to Thomson Reuters data through Friday, of the 352 companies in the benchmark index that have released results, 63 percent have beat analyst expectations.
President Barack Obama is scheduled to submit to the U.S. Congress his fiscal 2013 budget proposal, which attempts to chart a fiscal path for the next 10 years.
(Reporting By Chuck Mikolajczak; Editing by Padraic Cassidy)
© Copyright Thomson Reuters 2024. All rights reserved.