Stock futures point to a higher open
Friday, October 23, 2009 11:35 AM PDT
NEW YORK (AP) — Stock futures headed toward a higher open Friday, as investors looked to another round of earnings reports and the latest data on the housing market.
Overseas markets rose following the U.S. market’s advance a day earlier. Traders were heartened by stronger profits and upbeat outlooks from companies seen as bellwethers of consumer demand in an economy emerging from recession. A German business sentiment index also showed confidence rose for a seventh consecutive month in October as Europe’s largest economy showed more signs of recovery.
More earnings data and a report on existing home sales are expected to provide further direction for the market.
Software giant Microsoft Corp. said its profit fell 18 percent in the last quarter, due to a drop in revenue for the deferral of sales of the company’s new Windows 7 software. If it counted the deferred revenue, earnings would have increased 8 percent from last year. Whirlpool Corp. reported that its third-quarter profit fell 47 percent as the world’s biggest home appliance maker continued to slash costs.
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to combat slumping demand for its big-ticket items.
Analysts say investors need to see continued evidence that consumer spending is picking up before the market can sustain a steady rebound.
Federal Reserve Chairman Ben Bernanke, speaking at Fed conference in Chatham, Mass., prodded Congress to enact legislation overhauling the nation’s financial regulatory system.
A report on September home sales data could provide additional insight to the market’s direction. With homebuyers rushing to complete their purchases before a tax credit for first-time owners expires, a National Association of Realtors report is expected to show strong September sales.
Home resales are expected to show an almost 5 percent increase to a seasonally adjusted annual rate of 5.35 million, up from 5.1 million in August, according to economists polled by Thomson Reuters.
If the report, which is due out at 10 a.m. EDT, meets forecasts it would be the best month for home sales in more than two years.
Ahead of the opening bell, Dow Jones industrial average futures rose 22, or 0.2 percent, to 10,060. Standard & Poor’s 500 index futures rose 3.60, or 0.3 percent, to 1,094.40, while Nasdaq 100 index futures rose 13.25, or 0.8 percent, to 1,775.75.
Stocks posted big gains Thursday, sending the Dow up 132 points. Investors snapped up financial shares after several banks said they weren’t seeing as many loans go bad. The market also extended its gains after Wal-Mart Stores Inc. said it expects sales to grow this year and increase at a faster pace next year.
Meanwhile, bond prices dipped Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.48 percent from 3.42 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.07 percent from 0.04 percent late Thursday.
The dollar mostly rose against other major currencies, while gold prices also rose.
Overseas, Japan’s Nikkei stock average rose 0.2 percent. In afternoon trading, Britain’s FTSE 100 climbed 1.5 percent, Germany’s DAX index and France’s CAC-40 rose 1.2 percent.
