Stock futures are pointing to a higher open as equities look to close out the second quarter by extending Tuesday's big rally into the best three-day gain since February. The Dow and S&P 500 are now back in the black for 2016 and for Q2, but the Nasdaq is still in the red for both periods. Overall, major U.S. averages have now recovered about 60% of their post-Brexit losses. (Sa)
Nearly all of the largest U.S. banks are on steady enough footing to issue dividends or make share buybacks after passing the final round of the Fed's annual stress tests. Deutsche Bank and Santander were the only lenders to fail for a second year in a row, meaning they cannot increase shareholder payouts until they establish a new plan. "Material weaknesses" were also seen at Morgan Stanley, but the Fed allowed the bank to proceed with a dividend hike and $3.5B buyback while it rectifies the issues. (Sa)
Oil is headed for its biggest quarterly advance since 2009, rising almost 30% in the last three months as falling American supply adds to speculation that the global surplus is easing. Data from the EIA yesterday showed U.S. crude stockpiles dropping to the lowest since March and output falling for a third consecutive week. Supply disruptions in Nigeria and Canada, as well as fears over strike outages in Norway, have also given the commodity a big lift.
S&P 500 futures are up 3 and NASDAQ futures are up 2. The MSCI International Index is up marginally.
Oil is down $.88 at $49.00 a barrel.
Gold is down $5 at $1322 a Troy ounce.
With Northwest Quadrant Wealth Management a Registered Investment Advisor I am Josh Fenili.
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