Stock futures rise, helped by Cisco results
By Ryan Vlastelica | November 14, 2012 11:28 PM EST
Stock index futures rose on Wednesday, indicating that equities would rebound after a series of weak sessions on strong results from Cisco.
The S&P 500 has fallen 3.8 percent over the past five session, with most of those losses driven by uncertainty over looming U.S. "fiscal cliff" demand and persisting concerns over Europe. The index closed below its 200-day moving average for a fourth day in a row on Tuesday, a technical indicator that suggests recent declines could gain momentum.
Cisco Systems Inc
The results could boost sentiment over the technology sector <.GSPT>, where shares have dropped almost 10 percent in value over the past two months, dragged down by earnings disappointments from key names like Google
Still, macroeconomic issues will likely still play a major role in trading direction as investors continue to grapple with Europe's debt crisis and the fiscal cliff, a series of mandated tax hikes and spending cuts that start to take effect next year.
Analysts say serious fiscal negotiations are still weeks away, but that the failure to reach a deal in Congress could tip the world's largest economy into recession.
S&P 500 futures rose 6.7 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 48 points and Nasdaq 100 futures rose 17.5 points.
European shares <.FTEU3> were 0.5 percent lower as Greece's unresolved debt crisis continued to raise questions about the region's growth potential, while anti-austerity strikes across southern Europe added to concerns that measures to deal with the debt would be politically difficult to implement.
International Monetary Fund Managing Director Christine Lagarde said on Wednesday she expected a real fix for Greece that included debt sustainability, rather than a quick fix.
October retail sales are on tap for release at 8:30 a.m. ET (1330 GMT) and are seen dropping 0.2 percent. In September, sales climbed 1.1 percent. Also, the latest FOMC minutes will be released Wednesday afternoon.
U.S. stocks fell in a volatile session Tuesday, pressured by Microsoft Corp
(Editing by Bernadette Baum)
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
Join the Conversation
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales
- HTC Google Nexus 8 Release Date Imminent with New Nexus 7 Deals, Two New Tablets Soon