US stock futures advanced on Monday after the Standard & Poor’s 500 Index saw its worst decline since 2012, with retail sales data showing the best growth since 2012 and Citigroup surging after reporting an unexpected hike in earnings.
Citigroup gained 3.3% after announcing earnings that surpassed forecasts. Edwards Lifesciences Corp. advanced 12% on a US court ruling that put a cap on sales of CoreValve system, which is owned by competitor Medtronic Inc.
Lexicon Pharmaceuticals Inc gained 20% to trade at $1.90.
June expiry S&P 500 futures added 0.5% to 1,821.4 as of 8:35 am in New York. Dow Jones Industrial Average futures surged 62 points or 0.4% to hit 16,043 today. Contracts on the NASDAQ 100 Index gained 0.6%.
“We had JPMorgan come in below expectations so it’s clear it’s been a pretty tough quarter for U.S. financial services. We’ll get a much better picture of corporate America come this week with some more earnings coming through,” strategist Henk Potts of London-based Barclays Wealth & Investment Management told Bloomberg.
Retails sales soared in March by the largest margin since September 2012, led by increased purchases of cars, clothing, and garden supplies, buoying recovery of the economy from effects of bad weather at the beginning of the year.
Figures from the Commerce Department showed on Monday that retail sales grew 1.1% in March by the most since September 2012, as almost all categories showed a surge in receipts.
Retail sales represent a third of consumer buying and had added 0.7% in February after the statistic was revised, according to Reuters.
US stock index futures stretched their rally on the bullish report, although prices for US Treasury debt declined.
Americans bought more building materials and gardening supplies, with sales in the commodities surging 1.8%.
However, electronics and appliances stores saw receipts plunge 1.6%.
To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at firstname.lastname@example.org