MARKET SNAPSHOT: U.S. Stock Futures Seesaw As Oil Rally Fades

By Sara Sjolin, MarketWatch
Apple continues to rise premarket
Wall Street was set for a choppy open on Tuesday, with stock futures struggling for direction as investors assess a
faded rally in oil prices and wait for key inflation data.makeAd(‘4′,’300×250′,’mktsnews’,’article’,”,”);
Apple Inc. shares (AAPL), up 1% premarket, helped lift the Nasdaq. The stock built on a 3.7% jump on Monday, which
came after Warren Buffett’s Berkshire Hathaway Inc. (BRKA) disclosed in a regulatory filing it had bought a 9.8 million-
share stake during (http://www.marketwatch.com/story/apples-stock-surges-after-warren-buffett-discloses-new-share-stake-
2016-05-16) the first quarter.
More broadly, U.S. stocks closed with gains across all three benchmarks (http://www.marketwatch.com/story/wall-street-
set-to-struggle-as-downbeat-china-data-overshadows-oils-rise-2016-05-16) on Monday, as a surge in oil prices and a rally
in tech stocks overshadowed weaker-than-expected manufacturing data from the New York region.
Oil in the driver’s seat: A rise in crude prices helped lift U.S. stock futures early in Tuesday’s premarket session,
but shares started to decline after oil turned lower.
West Texas Intermediate crude oil slipped 2 cents to $47.70 a barrel, erasing a gain of as much as 1.5% earlier in
the session. Brent gave up 32 cents to $48.65.
Crude had jumped more than 3% (http://www.marketwatch.com/story/oil-prices-higher-but-50-a-barrel-proves-tough-
resistance-2016-05-16) on Monday after Goldman Sachs said the oil market is now in a supply shortfall.
Read:Why Libya could be the biggest threat to recovering oil prices (http://www.marketwatch.com/story/why-libya-could-
be-the-biggest-threat-to-recovering-oil-prices-2016-05-16)
Shares of oil giant Chevron Corp.(CVX) rose 0.6% ahead of the bell, while Transocean Ltd.(RIG) added 0.2%.
Economic news: Inflation numbers are the story of the day, with the April consumer price index for April due out at 8:
30 a.m. Eastern Time.
Core inflation is forecast to inch down to 2.1% from 2.2% year-over-year, but still stay around the Federal Reserve’s
target of 2%.
“If we see another month or two of inflation at these higher levels, it may be enough to convince the Fed that it can
raise rates again and stick to its plan of raising gradually rather than hold off and risk having to raise sharply,”
said Craig Erlam, senior market analyst at Oanda, in a note.
Three Fed speakers are on the docket Tuesday. San Francisco Fed President John Williams and Atlanta Fed President
Dennis Lockhart will discuss the economy at a Politico event in Washington, D.C. at noon Eastern Time.
Dallas Fed President Rob Kaplan will moderate a Q&A at a Fed community forum in Midland, Texas at 1:15 p.m. Eastern.
Among other data releases Tuesday, readings on housing starts and building permits are due at 8:30 a.m. Eastern,
followed by industrial production and capacity utilization at 9:15 a.m. Eastern. All data sets are for April.
See MarketWatch’s .
Movers & shakers: Shares of LendingClub Corp.(LC) slid 9.9% ahead of the bell after the online lender late Monday
revealed a Justice Department investigation (http://www.marketwatch.com/story/lendingclub-received-grand-jury-subpoena-
after-ceos-departure-2016-05-16) and unveiled a potential, dramatic shift in its business model.
Perrigo Co. PLC(PRGO) lost 3% premarket after the maker of health care products said its fourth-quarter loss was
bigger than it reported last week. The result update reflects a smaller tax benefit than originally reported.
Later in the morning, attention turns to Home Depot Inc.(HD) and TJX Cos.(TJX), which are expected to report earnings
ahead of the bell.
Other markets: Shares in Asia ended mostly higher (http://www.marketwatch.com/story/asian-markets-get-boost-from-
higher-oil-prices-2016-05-16) as markets got a boost from rising oil prices. It was the same story in Europe, where all
major benchmarks traded higher.
Metals were mostly lower, while the dollar traded mixed against other major currencies.

(END) Dow Jones Newswires
05-17-160537ET
Copyright (c) 2016 Dow Jones & Company, Inc.

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