* Futures up: Dow 64 pts, S&P 5.5 pts, Nasdaq 20.25 pts
By Tanya Agrawal
June 26 (Reuters) – U.S. stock index futures were higher as
oil prices rebounded, while investors awaited economic data for
a reading on the health of the economy.
* Oil rose for a third straight session, as speculators took
advantage of last week’s drop to seven-month lows, although a
relentless increase in U.S. supply and little evidence of a
widespread drop in global inventories capped gains.
* The recent drop in oil prices have spurred concerns about
low inflation, which stubbornly remains below the Federal
Reserve’s 2 percent target rate.
* The central bank raised rates this month for the second
time this year and is expected to raise it again. Futures imply
only a 50 percent chance of another rate hike by December.
* Fed Chair Janet Yellen speaks on London on Tuesday and
investors will look for any clues to the rate outlook, after
mixed views from other Fed officials in recent days.
* On Monday, San Francisco Fed President John Williams said
the Fed needs to raise rates gradually or the economy runs the
risk of overheating.
* Data is expected to show new orders for key U.S.-made
capital goods likely rose slightly in May, with non-defense
orders, a closely watched proxy for business spending plans,
probably rising 0.3 percent. The report is due at 8:30 a.m. ET
* U.S. stocks ended higher on Friday after a last-minute
trading spike, helped by gains in technology sector, which
offset weakness in financial stocks, sending the Nasdaq higher
and giving it a weekly gain for the first time in three weeks.
* Shares of Portola Pharmaceuticals were up 4
percent at $58.32 in premarket trading, after the FDA, on
Friday, approved a new oral blood-thinner made by the company.
* Micron was up 1.5 percent at $32.20 after Cowen &
Co increased its price target on the chipmaker’s stock.
Futures snapshot at 7:00 a.m. ET:
* Dow e-minis were up 64 points, or 0.3 percent,
with 16,790 contracts changing hands.
* S&P 500 e-minis were up 5.5 points, or 0.23
percent, with 94,373 contracts traded.
* Nasdaq 100 e-minis were up 20.25 points, or 0.35
percent, on volume of 19,720 contracts.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)