US Stock Futures Higher After Labor, Manufacturing Data
March 15 2012 - 9:20AM
Dow Jones News
U.S. stock futures rose after firm readings on the labor market
and manufacturing activity, as blue chips look to extend a recent
streak of gains to seven sessions.
Less than 60 minutes before the opening bell, Dow Jones
Industrial Average futures gained 25 points, or 0.2%, to 13155. The
Dow is on a six-session streak of gains, the longest such run since
an eight-session streak ended in February.
Standard & Poor's 500-stock index futures tacked on 3
points, or 0.2%, to 1392 and Nasdaq 100 futures advanced 9 points,
or 0.3%, to 2711. The S&P 500 fell 0.1% Wednesday, but the
Nasdaq Composite edged up less than 0.1% to close at the highest
level since Nov. 15, 2000.
Changes in stock futures don't always accurately predict stock
moves after the opening bell.
Stock futures held gains after a raft of U.S. economic data. The
number of U.S. workers filing new applications for unemployment
benefits fell last week, the latest sign that the labor market is
improving. Initial jobless claims tumbled by 14,000 to a seasonally
adjusted 351,000 last week. Economists surveyed by Dow Jones
Newswires had forecast that claims would fall by 5,000.
New York manufacturing activity accelerated in March. The Empire
State's business conditions index increased for the fourth
consecutive month to 20.21 from 19.53 in February, the highest in
well over a year. Economists had expected the index to drop to
17.9.
U.S. wholesale prices increased in February at the fastest pace
in five months, driven by rising gasoline costs. The producer price
index increased a seasonally adjusted 0.4%, slightly less the
expectations for a 0.5% rise.
Still due at 10 a.m. is a reading of manufacturing activity in
the Philadelphia region, which is expected to show a slight
increase in March.
European markets mostly edged higher, with the Stoxx Europe 600
up less than 0.1%. London's FTSE 100 Index declined 0.2% after
Fitch Ratings cuts its outlook on the U.K. to negative, saying the
country's financial flexibility was "very limited."
Asian bourses were mostly lower, with China's Shanghai Composite
falling 0.7%, while Japan's Nikkei Stock Average rose 0.7% to post
its third consecutive gain.
Crude futures gained 0.1% to $105.58 a barrel, while gold
futures added 0.1% to $1,645.00 a troy ounce. The U.S. dollar lost
ground against both the euro and the yen.
In corporate news, a Dutch court said Samsung Electronics can't
pursue injunctions against Apple for infringing patents as long as
Apple is willing to negotiate license agreements. Shares of Apple
rose 1.4% in premarket trading, as shares neared $600 for the first
time.
Guess reported fiscal fourth-quarter earnings that were in line
with expectations, but revenue fell short, and the company provided
first-quarter earnings and revenue outlooks well below current
projections. Shares of the apparel and accessories retailer slumped
12% in premarket trading.
In deal news, Cisco is nearing a deal to acquire
digital-television company NDS for roughly $4 billion. Cisco fell
1.1% before the open.
Capital One Financial said it plans to offer up to $1.25 billion
worth of its common stock in a public sale to help fund its
previously-announced acquisition of HSBC's U.S. credit card
business. The stock slipped 0.6% ahead of the open.
Radvision agreed to be acquired by Avaya in a deal valued at
$230 million. Shares of the video conferencing technologies company
tacked on 4.7% in the premarket.
Vera Bradley reported fiscal fourth-quarter earnings and revenue
that topped estimates, but provided a first-quarter earnings
outlook that was below current projections. The stock slid 5.7% in
the premarket.
Winnebago Industries reported better-than-expected fiscal
second-quarter revenue, but also surprise loss for the quarter
because of increased discounts and aggressive pricing strategies.
The stock was still inactive ahead of the open.
-By Chris Dieterich, Dow Jones Newswires; 212-416-2611;
christopher.dieterich@dowjones.com