Wall Street set to open up on commodities' gains
Stock index futures pointed to a modestly higher open on Tuesday as stronger oil prices led a rebound from the previous session when stocks closed at their lowest in a month.
Rising concerns about euro-zone debt pressured equities on Monday. While those headwinds remain, markets have steadied following a decline of more than 1 percent. European shares rose 0.4 percent.
Both U.S. crude and Brent futures rose more than 1 percent after Goldman Sachs raised its forecast for oil, citing strong fuel demand growth. Occidental Petroleum
Copper also rallied, gaining 1.4 percent after Goldman forecast an increase in Chinese purchases in the coming months. Gold prices rose 0.5 percent while the U.S. dollar index <.DXY> fell 0.2 percent.
Since positive fundamentals are still in place for commodities, even though the world is a dangerous place with the euro zone and other issues, my view is that commodities will continue to be in a bull market, said Paul Dietrich, chief executive officer of Foxhall Capital Management in Orange, Connecticut.
Dietrich added that Foxhall had last week increased its exposure to commodities and that he expects to continue increasing the allocation. I use these corrections as opportunities to increase exposure to commodities, he said.
U.S.-listed shares of Sony Corp <6758.T>
S&P 500 futures rose 5.3 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 39 points and Nasdaq 100 futures rose 7 points.
In an expanding investigation into mortgage operations, New York's attorney general is seeking information from banks, including JPMorgan Chase & Co
U.S.-listed shares of Deutsche Bank fell 0.4 percent in light premarket trading while Dow component JPMorgan rose 0.4 percent.
The U.S. Treasury is expected to sell 15 percent of its stake in American International Group Inc
Shares of AutoZone
Medical device maker Medtronic Inc
Applied Materials
April new home sales data, due at 10 a.m. <1400 GMT>, are seen rising by the same amount as the previous month. The Federal Reserve Bank of Richmond May indexes on area manufacturing and service sectors will also be released.
(Editing by Kenneth Barry)
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