Stock Futures Strengthen on Global Growth Forecasts, Ahead of Beige Book

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Stock futures continue to trade higher but have had little reaction to much stronger-than-expected regional manufacturing data and an uptick in inflationary pressure. Overnight gains attributed to an upgrade in global economic growth forecasts from The World Bank fueled advances overseas, spilling into U.S. markets and were underpinned by expectations for more bullish U.S. economic data including the most recent Federal Reserve Beige Book. Equities are also getting a boost from strong earnings from Bank of America ( BAC ), iPhone sales in China, and a firmer dollar.

December producer prices jumped 0.4%, its largest gain in more than 6 months and first increase in wholesale prices in 3 months. Excluding the volatile food and fuel segment, PPI was up a greater than expected 0.3%.

Also, the Empire State ( NY ) manufacturing index surged to a 20-month high of 12.51 in January, well above estimates for an increase from 0.98 in December to 3.30. The strength in the overall index was a result in gains from everything from new orders to inventories.


-Dow Jones Industrial up 0.12%

-S&P 500 futures up 0.10%

-Nasdaq 100 futures up 0.29%

SENTIMENT

Nikkei up 2.50%

Hang Seng up 0.49%

Shanghai Composite down 0.17%

FTSE-100 up 0.42%

DAX-30 up 1.37%

PRE-MARKET SECTOR WATCH

(-) Large cap tech: higher

(+) Chip stocks: higher

(+) Software stocks: higher

(+) Hardware stocks: higher

(+) Internet stocks: higher

(-) Drug stocks: lower

(+) Financial stocks: higher

(+) Retail stocks: higher

(+) Industrial stocks: higher

(+) Airlines: higher

(-) Autos lower

UPSIDE MOVERS:

HEB (+18.60%) Continues Tuesday's gains after the company announced plans to present at the Biotech Showcase, saying it would give a strategic overview of its business that would include "new data on potential treatment and/or prevention of emerging pandemic viral threats."

ARO (+5.17%) Bloomberg reports Aeropostale has reportedly approached PE firms about a possible sale.

CHTP (+156.63%) FDA recommend approval of NORTHERA (droxidopa) for the treatment of symptomatic neurogenic orthostatic hypotension (nOH)

DOWNSIDE MOVERS:

REGN (-1.58%) BMO downgrades to Market Perform from Outperform

HTZ (-1.50%) Goldman Sachs downgrades to Neutral from Buy



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: BAC , NY

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