Exchange traded funds tracking stocks and oil were poised to rise in the U.S. on Tuesday on hopes Federal Reserve Chairman Ben Bernanke will announce additional support for the economy in a speech Friday.
SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) and U.S. Oil Fund (NYSEArca: USO) added 1.5% before the opening bell. Dow futures were up about 130 points in preopen trading while crude futures traded as high as $86 a barrel. Stocks also gained ground in Europe on easing credit concerns. [Equity ETFs Look for Support]
ETFs following U.S. Treasuries and the dollar were set for a lower open in Tuesday’s “risk-on” trade. [Risk Off; Metals, Treasury ETFs Outperform]
“All the focus is going to be on Friday’s presentation and what, if anything, Ben Bernanke is going to” do to shore up U.S. growth, Mark Luschini, chief investment strategist at Janney Montgomery Scott, told Bloomberg. “It’s dangerous to presume we’re going to hear anything definitive. All in, things are going to remain fairly volatile.”
The Fed chief is scheduled to speak on Friday in Jackson Hole, Wyoming. [Gold ETFs Rise Before Bernanke Speech]