European markets are called to open higher this morning.
Asian stocks snapped a four-day drop, the euro climbed against the dollar and default risk slid after Luxembourg Prime Minister Jean-Claude Juncker soothed concern that Greece is bound for a default. Oil rose for a second day.
The MSCI Asia Pacific Index jumped 1.2 percent as of 3:03 p.m. in Tokyo. Futures on the Standard & Poor’s 500 Index added 0.1 percent, while those on the Euro Stoxx 50 Index increased 0.5 percent. The euro strengthened against 13 of its 16 major peers and was up 0.3 percent to $1.4342. Australia’s dollar reversed gains of as much as 0.3 percent versus its U.S. counterpart after minutes from the central bank. Oil rallied as much as 0.9 percent, while zinc paced an advance in metals.
U.S. stocks managed decent gains Monday, even as investors remained cautious about Greece’ debt crisis.
After slipping about 0.3% in the opening minutes, the major indexes turned higher, with the Dow Jones industrial average closing up 76 points, or 0.6%.
Financial stocks JPMorgan Chase and Bank of America were the biggest laggards, while DuPont and Caterpillar led the gains.
The S&P 500 rose 7 points, or 0.5%, and the Nasdaq composite rose 13 points, or 0.5%. Biogen Idec was the best performer on both indexes, with shares rising more than 4%.
The gains were limited as investors grappled with the latest news on the Greek debt crisis. European finance ministers said Monday that the country won’t receive fresh loans until mid-July.
“All eyes are on the Greek debt situation and whether more help is on the way,” said Sameer Samana, an analyst at Wells Fargo Advisors. He said ongoing developments in Greece will likely continue to drive market action, as investors wait for the debt-ridden country to pass more austerity measures.
White House spokesman Jay Carney said Monday that the Obama administration believes that Greece’ debt situation can be resolved with Europe’ help, but “it does create a headwind.”
Events this week
Tuesday — Wall Street will get May existing home sales from the National Association of Realtors at 10 a.m. ET. Economists surveyed by Briefing.com expect the pace of existing home buying to slow to 4.78 million annualized units, down from 5.05 million units in April.
Bookseller Barnes & Noble (BKS, Fortune 500) will report before the market open on Tuesday, with media software giant Adobe (ADBE) reporting after the close. Analysts expect Barnes & Noble to post a loss of 91 cents a share according to Thomson Reuters, while Adobe is expected to earn 51 cents a share.
Wednesday — The Federal Reserve will conclude its two-day meeting on Wednesday, with the interest rate decision being announced at 12:30 p.m. ET. Fed Chairman Ben Bernanke’ press conference starts at roughly 2 p.m. ET.
In earnings, shipping company FedEx (FDX, Fortune 500) is scheduled to report its results before the market open, with analysts expecting the company to earn $1.72 a share. Also reporting on Wednesday is home decor retailer Bed Bath & Beyond (BBBY, Fortune 500).
0:00 / 3:18 BullHorn: Safe stocks for a wacky market
Thursday — Investors will get weekly jobless claims from the Labor Department at 8:30 a.m. ET followed later by May new home sales from the Census Department at 10 a.m. ET.
Economists are looking for weekly claims to rise to 418,000 from last week’ 414,000 claims, while new home sales are expected to fall to 305,000 annualized units from April’ 323,000 annualized units.
Software giant Oracle (ORCL, Fortune 500) will report its earnings after the market open on Thursday. Analysts expect Oracle to earn 71 cents a share. Investors will also get earnings from ConAgra Foods (CAG, Fortune 500), H&R Block (HRB) and homebuilder Lennar (LEN).
Friday – The Commerce Department will release its third reading on first-quarter gross domestic product at 8:30 a.m. ET, as well as May durable goods orders.
First quarter GDP is expected to remain steady at 1.8% growth according to economists’ estimates. Durable goods orders are expected to rise 1% compared with April’ 3.6% decline in orders.