By Dow Jones Business News,
December 27, 2013, 08:33:00 AM EDT
--Stock futures nudge higher, as blue chips look to extend win streak
--European investors return from holiday in an upbeat mood, with stock heading for 5 1/2-year high
--Yield on 10-year note tops 3%; dollar slips to two-year low against the euro
By Tomi Kilgore
NEW YORK--U.S. stock futures tilted slightly higher, as growing optimism about the economy and gains in overseas
markets helped extend recent gains to record highs.
European markets were broadly higher, with the region's benchmark index heading toward a 5 1/2-year high, as investors
returned from a two-day holiday in an upbeat mood.
About 90 minutes ahead of the open, Dow Jones Industrial Average futures advanced 15 points, or 0.1%, to 16437. The
Dow Thursday rallied 122 points, or 0.7%, to hit the 50th record high of the year. The Dow also posted its sixth-
straight gain, the longest winning streak since the 10-session stretch ending March 14.
S&P 500 index futures edged up one point, or 0.1%, to 1837 and Nasdaq 100 futures gained two points, or 0.1%, to 3584.
Changes in stock futures don't always accurately predict stock moves after the opening bell.
Robert Pavlik, chief market strategist at Banyan Partners, which advises on $4 billion in assets, said investors
should just sit tight, and not read too much into the market's moves in the near term, as volumes should remain very
"The stock market is being driven mainly on yearend squaring up of positions," Mr. Pavlik said. "You can't take
anything from what the market does the next couple days."
There are no major economic data scheduled for release.
The yield on the 10-year Treasury note ticked up to 3.013%, after settling at a 2 1/2-year high of 2.990% late
Rather than being spooked by the recent run up in Treasury yields, which raises borrowing costs for home buyers,
investors are taking it as a sign of an improving U.S. economy that can sustain its growth even though the Federal
Reserve has started reducing its monetary-stimulus efforts, analysts say.
"There is a lot of optimism being built up about an improving economy," Mr. Pavlik said. But while "the market's
preference is to try to rise for the remaining days of the year," investors shouldn't scramble to get more involved in
the market than they already are, he said.
The dollar rose against the yen to reach Y105 for the first time since October 2008, but fell sharply against the euro
to levels not seen since November 2011.
Front month February crude oil futures inched up less than 0.1% to $99.64 a barrel, while December gold futures eased
0.1% to $1,212.90 an ounce.
In Europe, the Stoxx Europe 600 was up 0.7%, and on track for a sixth-straight gain to the highest level since May
Germany's DAX 30 index rose 0.8%, France's CAC 40 gained 1.1% and the U.K.'sFTSE 100 advanced 0.7%.
Investors shrugged off the turmoil in Turkish markets, in which stocks extended their recent slide after Prime
Minister Recep Tayyip Erdogan's decision to replace nearly half of his cabinet in the aftermath of a corruption scandal.
In Asia, China's Shanghai Composite ran up 1.4% as interbank lending rates eased. Japan's Nikkei Stock Average erased
early losses to end up less than 0.1% at a six-year high.
In corporate news, WPCS International soared 54% in heavy premarket trading after the company announced late Thursday
that its BTX Trader unit released a beta version of a bitcoin trading platform.
Twitter fell 0.9%, pulling back from a rally that has produced a 76% gain so far this month. The microblogging site's
market capitalization through Thursday reached $39.9 billion, topping that of Target and Time Warner.
General Motors slipped 0.1% after the auto maker and its Chinese partner, said it will recall more than 1.46 million
Buick and Chevrolet cars because of defective fuel-pump brackets.
Write to Tomi Kilgore at firstname.lastname@example.org
(END) Dow Jones Newswires
Copyright (c) 2013 Dow Jones & Company, Inc.
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