By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.S. stock futures indicated a positive
start for Wall Street on Friday, with investors likely to be handed
figures showing the mood of U.S. consumers has brightened.
Alongside the plateful of economic data, a speech by Federal
Reserve Bank of Minneapolis President Narayana Kocherlakota will
also be watched by investors.
Futures for the Dow Jones Industrial Average (DJU4) rose 42
points, or 0.3%, to 16,724, while those for the S&P 500 index
(SPU4) gained 4 points to 1,957.60. Futures for the Nasdaq 100
index (NDU4) tacked on 12.25 points, or 0.3%, to 3,980.25.
A reading on consumer sentiment from the University of
Michigan/Thomson Reuters is due at 9:55 a.m. Eastern Time. The mood
is expected to have improved in August; economists polled by
MarketWatch expect a preliminary reading of 82.3, compared with
81.8 in July. Analysts look at sentiment surveys to get a feel for
the direction of consumer spending, the key driver of the U.S.
economy.
"Recent stock gains and the steady weekly decline in gasoline
prices at the pump likely buoyed August sentiment," wrote Crédit
Agricole's chief economist for North America Michael Carey.
The Federal Reserve's July report on industrial production and
capacity utilization is due at 9:15 a.m. Eastern Time. Economists
project slight increases for each measure, with industrial
production likely to increase a seasonally adjusted 0.3%.
The Empire State Manufacturing Survey will provide fresh data on
manufacturing trends, and will be released at 8:30 a.m. At the same
time, the U.S. Labor Department will report on July producer
prices.
At 10:45 a.m. Eastern, Narayana Kocherlakota, president of the
Minneapolis Federal Reserve, will talk about the economy and the
state of community banking at the Independent Community Bankers of
Minnesota's annual meeting Brainerd, Minn. Kocherlakota, one of the
Fed's leading doves, is a voting member of the Fed policy committee
this year.
U.S. stocks on Thursday closed modestly higher, leaving the
S&P 500 index (SPX) up 0.4%.
Crédit Agricole's Carey noted that geopolitical tensions in
Ukraine and the Middle East have put a strain on market sentiment
in recent weeks.
In Ukraine on Friday, border guards and customs officers began
inspecting a convoy of trucks that Russia says contains
humanitarian aid for war-torn eastern Ukraine. Ukraine has said the
convoy could be used as a prelude to a Russian invasion.
Stocks in focus
Before the opening bell, shares of cosmetics maker Estee Lauder
(EL) rose 2.2% as profit came in better than anticipated.
Monster Beverage (MNST) shares leapt 21% in premarket trade on
Coca-Cola's (KO) move to acquire a 17% ownership stake in the
energy drink company, as part of a long-term partnership deal. Coke
will make a $2.15 billion cash payment and transfer its global
energy drink business to Monster.
Achillion Pharmaceuticals (US-ACHN) rallied 13% in heavy volume
following positive results from a clinical trial related to
sovaprevir, the company's experimental hepatitis C treatment.
J.C. Penney Co. (JCP) shares rose 2.4% ahead of the open. The
department-store operator late Thursday reported a
narrower-than-expected second-quarter loss.
Applied Materials Inc. (AMAT) shares picked up 3.3% premarket,
after the chip-making equipment provider's quarterly sales and
earnings report topped Wall Street expectations.
SeaWorld Entertainment (SEAS) is set to announce plans to expand
its killer-whale habitats, The Wall Street Journal reports.
In other markets, oil futures (CLU4) edged higher and gold
futures (GCZ4) fell $4 an ounce. In Asia, the Hong Kong Hang Seng
index finished at its best level in more than three years. European
stocks were higher.
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