RTRS: US STOCKS-Futures rise on economic, bank hopes
U.S. stock futures pointed to a higher open on Tuesday as positive developments in European financials helped bank shares and investors hoped the day's data will boost sentiment that the slump is moderating.
The broad S&P 500 was on track to end March as the best month since April 2003 after a rapid rally that has seen stocks climb more than 16 percent off 12-year lows hit on March 9.
A reading from the S&P/Case-Shiller home price index, the Chicago purchasing managers index and March consumer confidence data are all on tap for the morning.
"There's no question that the current economic conditions are weak," said Rick Meckler, president of investment firm LibertyView Capital Management in New York, adding:
"But what investors keep hoping to hear is evidence of a bottom -- not necessarily that things are getting better right now, but they're not getting any worse."
Shares of Barclays (BARC.L) rose in London when the bank said its trading performance "continues to be strong" after it declined to take part in a government asset protection scheme.
Fortis (FOR.BR) gained 0.8 percent after outlining its future as a viable insurance group following a 28 billion euro ($37 billion) loss in 2008 after the carve-out of its banking activities. For details see [ID:nLV500195].
S&P 500 futures SPc1 rose 7.10 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 DJc1 climbed 66 points, and Nasdaq 100 NDc1 futures added 11.50 points.
The Select Sector SPDR Financial ETF XLF.P was up 2.9 percent as all the biggest U.S. banks traded higher before the bell, bouncing back from a decline on Monday after a spate of European bank rescues heightened fears over the sector.
JPMorgan Chase (JPM.N) was up 2.8 percent at $25.55, while Bank of America (BAC.N) gained 6 percent to $6.39.
U.S. President Barack Obama is heading to Europe with a hefty agenda for tackling the economic crisis at a summit of the Group of 20 major economies on Thursday.
