U.S. stock futures were modestly higher ahead of the open as
investors received news that the economic status in China met analysts’
expectations. The news out of China allayed fears that the economic slowdown
While the latest data show China's second quarter GDP grew at
7.5 percent over the previous year, which was slower pace over the previous
year, the performance matched the government's target and the consensus
estimate from private analysts.
Markets reacted favorably to the
news that the slowdown was not greater than expected. In contrast, China has
averaged growth of around 10% a year over the past thirty years.
The U.S. government is scheduled
to release data on June retail sales on Monday which may have mixed news. If
retails sales show a significant rise, there may be fears that the Fed may slow
down its bond purchase program sooner. The bond purchase program has been
helping the equity markets as of late.
U.S. stocks closed higher Friday with modest gains that were put
Dow and S&P 500 in new record closings
and the Nasdaq was at
its highest level in over a ten years.
Bank earnings will remain in
focus Monday, with Citigroup (C) set to report its
quarterly results before the opening bell.
Boeing's (BA) stock rebounded and
edged up 1% after British investigators said that an Ethiopian Airlines 787 Dreamliner
fire at London Heathrow Airport last Friday was not caused by its batteries,
which have created problems in the
Major European markets gained less than 0.5% in morning trading,
while the main Chinese markets ended
with gains. The Shanghai Composite index
and the Hang Seng index
popped up by 1% and 0.1%, respectively. In Japan, the Tokyo Stock Exchange was
closed for a holiday.