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US STOCKS-Futures rise as risk-on sentiment improves
May 9, 2017 / 11:32 AM / 5 months ago

US STOCKS-Futures rise as risk-on sentiment improves

* Futures up: Dow 26 pts, S&P 1.5 pts, Nasdaq 2.75 pts

By Yashaswini Swamynathan

May 9 (Reuters) - U.S. stock index futures rose on Tuesday as a favorable French election outcome and a robust first-quarter earnings season improved appetite for risk.

* A relief rally swept Wall Street and European stocks following Emmanuel Macron’s victory in the French presidential election on Sunday. Macron is seen as business friendly and pro-EU.

* The 10-year U.S. Treasury yield rose to its highest in a month, while gold prices fell, indicating a shift in investor preference for riskier assets.

* The S&P 500 and the Nasdaq hit record intraday highs on Monday, while the VIX, Wall Street’s “fear gauge”, closed at its lowest level since 1993.

* Solid first-quarter earnings have also helped quell some fears about valuations, which have been driven up by a rally following Donald Trump’s election as the U.S. president.

* S&P 500 earnings on average have grown 14.4 percent, up from 10.1 percent estimated at the start of the earnings season, according to Thomson Reuters I/B/E/S.

* With no major economic data expected on Tuesday, investors will focus on comments from a couple of Federal Reserve speakers, including Minneapolis Fed President Neel Kashkari.

* Marriott International’s shares rose 5 percent to $101.25 in light premarket trading after the hotel chain reported a higher-than-expected quarterly profit.

* Car rental company Hertz Global sank nearly 19 percent at $12.20 following a bigger-than-expected quarterly loss.

Futures snapshot at 6:49 a.m. ET:

* Dow e-minis were up 26 points, or 0.12 percent, with 14,411 contracts changing hands.

* S&P 500 e-minis were up 1.5 points, or 0.06 percent, with 79,658 contracts traded.

* Nasdaq 100 e-minis were up 2.75 points, or 0.05 percent, on volume of 13,735 contracts. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D‘Silva)

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