By RTT News, October 28, 2013, 06:30:00 AM EDT
(RTTNews.com) - Early indications suggest that Wall Street stocks may open higher on Monday, with the major U.S. index futures currently firmly higher. The markets may seek the support of earnings from companies including Merck and stimulus hopes to keep the momentum intact. The Federal Reserve's industrial production report and the pending home sales data may also give some direction to the markets. At the same time, the buying interest may be muted ahead of a 2-day FOMC meeting getting underway tomorrow.
At 6:15 am ET, the Dow futures are rising 41 points, the S&P 500 futures are moving up 4.20 points and the Nasdaq 100 futures are advancing 11.50 points.
U.S. stocks extended its weekly advance in the week ended October 25th, helped by positive earnings reports and hopes that Federal Reserve's monetary policy committee meeting the following week will decide to delay the withdrawal of stimulus.
The 2-day FOMC meeting along with jobs and manufacturing data are likely to headline the economic events of the unfolding week. Traders may closely watch the outcome and the post meeting policy statement of the FOMC meeting that gets underway on Tuesday to see whether the fiscal crisis plaguing the nation has impacted the Fed's thinking on the timetable to withdraw the stimulus.
The Federal Reserve's industrial production report for September, the results of the Institute for Supply Management's national manufacturing survey, the results of the MNI's Chicago manufacturing survey for October, the jobless claims report, ADP'S private payrolls data for October, the Commerce Department's retail sales report for September, the Conference Board's consumer confidence reading for October and the National Association of Realtor's pending home sales index for September may also draw the attention of traders.
The Federal Reserve is scheduled to release its industrial production report for September at 9:15 am ET. Economists expect industrial production to have risen by 0.4 percent month-over-month in September, the same pace of increase as in the previous month.
The National Association of Realtors is due to release its pending home sales index for September at 10 am ET. The consensus estimates call for an unchanged reading for the index compared to the previous month.
In corporate news, Sohu.com ( SOHU ) reported better than expected third quarter results. The company's fourth quarter revenue guidance was above estimates, while its earnings guidance trailed expectations.
Changyou's (CYOU) third quarter results were in line. For the fourth quarter, the company expects non-GAAP earnings of 34-41 cents per share on revenues of $193 million to $199 million. The earnings guidance trailed expectations, while the revenue guidance was above estimates.
Apple ( AAPL ), Crane (CR), FMC Corp. ( FMC ), General Growth Properties ( GGP ), Hartford Financial (HIG), PartnerRe ( PRE ), PMC-Sierra ( PMCS ), Post Properties ( PPS ), Reinsurance Group of America ( RGA ), Riverbed Technology ( RVBD ), Sanmina ( SANM ) and Segate Technology (STX) are among the companies due to release their quarterly results after the close of trading.
The major Asian averages advanced, encouraged by the positive lead from Wall Street last Friday and amid optimistic expectations concerning U.S. monetary policy. The Japanese market led the gains in the region, with the Nikkei 225 average benefiting from the yen's retreat.
The Nikkei 225 average closed 307.85 points or 2.19 percent higher at 14,396. The latest trigger for the yen weakness was comments from Bank of Japan Deputy Governor Kikuo Iwata, who reiterated the central bank's commitment to unprecedented monetary easing until it reaches its desired inflation target of 2 percent. A majority of stocks advanced in the session, with Nippon Electric, Tokuyama, Mitsubishi Motors, Toyota Tsusho and Credit Saison leading the gains.
Australia's All Ordinaries ended up 51.60 points or 0.96 percent at 5,437. Hong Kong's Hang Seng closed at 22,807, up 108.24 points or 0.48 percent, and China's Shanghai Composite Index ended a volatile session up merely 0.91 points or 0.04 percent at 2,134.
On the economic front, a report released by the Chinese National Bureau of Statistics showed that profits at Chinese industrial firms rose 18.4 percent year-over-year in September, weaker than the 24.2 percent growth expected by economists.
European stocks opened higher but have since then given back some of their gains.
In corporate news, TNT Express reported a decline in its third quarter profits and revenues. However, the decline in earnings was not as worse as feared.
On the economic front, the average asking price for a house in the U.K. was up 0.5 percent in October compared to the previous month, according to a report released by property tracking website Hometrack. This follows the 0.5 percent increase in September and marks the ninth consecutive month of increase. On a yearly basis, house prices climbed 3.1 percent, accelerating from the 2.4 percent gain in the previous month.
A leading indicator of Eurozone's economic activity continued to rise in September, suggesting moderate positive growth for the economy in 2014. The Conference Board's leading economic index rose 0.5 percent from a month earlier to 109.6 following the 1 percent rise in August.
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