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U.S. futures surge on budget deal, eyes on data; Dow Jones up 1.24%

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Investing.com - U.S. stock futures pointed to a moderately lower open on Wednesday, as investors eyed the release of U.S. manufacturing data, while sentiment remained broadly supported by news of a U.S. budget deal.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 1.24% jump, S&P 500 futures signaled a 1.52% gain, while the Nasdaq 100 futures indicated a 1.58% surge.

U.S. lawmakers passed a compromise bill on Tuesday to avoid the fiscal cliff, blocking a series of looming tax increases and spending cuts that could have pushed the U.S. economy back into a recession.

U.S. President Barack Obama hailed the deal as "just one step in the broader effort to strengthen the economy".

The U.S. president was speaking after the House of Representatives passed a Senate-backed bill by 257 votes to 167.

Tech stocks were expected to be active after Samsung Electronics lost a bid to keep sales data of some of its products sealed in a U.S. patent dispute with Apple, sending shares in the iPhone maker up 2.36% in pre-market trade.

A U.S. judge denied Samsung's request to keep the sales figures secret while the company appeals an earlier sealing order.

The financial sector was also likely to be in focus, following a broad rally in European lenders. Bank of America saw shares surge 2.33% in early trading, while Citigroup advanced 2.05%.

Elsewhere, Facebook rallied 2.59% pre-market after BMO Capital, known for bearish comments on the social-networking company, upgraded the stock to "buy" from "sell" on Tuesday.

In company news, Duff & Phelps was slated to remain in the spotlight as shares soared over 19% on Tuesday after the investment-banking company agreed to be bought by private-equity firm Carlyle Group for about USD665 million.

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 surged 3.58%, France's CAC 40 rallied 2.16%, Germany's DAX advanced 2.20%, while Britain's FTSE 100 jumped 2.16%.

During the Asian trading session, Hong Kong's Hang Seng Index surged 2.89%, while Japan's Nikkei 225 Index was closed for a national holiday.

Later in the day, the Institute of Supply Management was to produce a report on manufacturing growth in the U.S.

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


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

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