Wall Street Advances Ahead of Home-sales Report

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Wall Street Advances Ahead of Home-sales Report

US stock-gauge futures soared, indicating the Standard & Poor’s 500 Index will gain, ahead of data that may show a hike in new-home sales, in another sign that the world’s biggest economy is going up.

Burger King Worldwide Inc. increased 14% and Tim Hortons Inc. advanced 17% before the bell in New York trading after the firms said the number two US burger chain is in negotiations to acquire the Canadian seller of coffee and doughnuts. InterMune Inc. added 37% after Roche Holding AG bought the biotechnology firm for $8.3 billion.

Futures on the S&P 500 that expire in September advanced 0.3% to 1,994.7 as of 7:29 am in New York. The S&P 500 gained 1.7% last week, the most since April and a weekly gain for the third time in a row, against the background of better-than-anticipated housing and factory output data. Dow Jones Industrial Average futures soared 51 points or 0.3% to 17,044 on Monday.

“There are a lot of positive fundamentals which support further momentum in the housing market. Good housing data would support the view that the U.S. economy is growing quite well,”Peter Garnry of Hellerup, Denmark-based Saxo Bank A/S told Bloomberg.

Futures on changing hands on the Chicago Mercantile Exchange paused for as long as four hours on Monday after a technical glitch, affecting contracts US share gauges, Treasuries, oil and gold.

Officials from world central banks led by Federal Reserve Chair Janet Yellen said workforce markets have to recover before their economies can stand higher interest rates.

According to Reuters, US investors took inspiration from Europe, where a gauge of main stocks jumped 0.7% after European Central Bank President Mario Draghi announced on Friday the ECB was willing to utilize available strategies in response to a further drop in inflation. Investors understood that to mean the ECB may start an economic stimulus program or another measure that would bolster assets such as stocks and bonds.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com