U.S. Stock Futures Underpinned by Calm in Global Markets, Tame Inflation Data
U.S. stock futures continue to grind higher Friday orning, as Wall Street takes advantage of geopolitical calm and early economic data that indicated modest economic growth with little inflationary pressures.
Ahead of the open, an as-expected gain in July producer prices coupled with weaker manufacturing activity in the NY Federal Reserve region caused little movement in the futures market, where all three major indices were holding respectable gains.
The producer-price data showed an as-expected 0.1% in nominal PPI and a 0.2% gain in the core index for July. Nominal PPI for June was left unrevised at +0.4%, while the core was lowered to +0.1% from +0.2% initially.
The Empire State manufacturing index fell back to 14.69 in August from a four-year high of 25.60 in June, missing forecasts for a more modest decline to 20.0. The futures index, however, rose to 46.8, a 2.5-year high, from 28.8 the month prior.
In corporate news, Coke ( KO ) is buying a 17% stake in Monster Beverage ( MNST ) for $2.15 billion, Applied Materials ( AMAT ) and Autodesk ( ADSK ) both beat earnings expectations, helping Nasdaq futures outperform, while better-than-expected earnings for JCPenney ( JCP ) should underpin the retail sector.
Global equities were all higher as well in reaction to encouraging news from Iraq following al-Maliki's decision to step-down as Iraq Prime Minister, and continued calm in Ukraine where Russia appears to be honoring its commitment to assist in humanitarian aid.
-Dow Jones Industrial up 0.28%
-S&P 500 futures up 0.22%
-Nasdaq 100 futures up 0.33%
Nikkei up 0.02%
Hang Seng up 0.62%
Shanghai Composite up 0.92%
FTSE-100 up 0.71%
DAX-30 up 0.87%
PRE-MARKET SECTOR WATCH
(+) Large cap tech: higher
(+) Chip stocks: higher
(+) Software stocks: higher
(+) Hardware stocks: higher
(+/-) Internet stocks: mixed
(+/-) Drug stocks: mixed
(+) Financial stocks: higher
(+) Retail stocks: higher
(+-) Industrial stocks: higher
(+) Airlines: higher
(+) Autos higher
(+) MNST (+26.31%) Coca-Cola ( KO ) pays $$2.15 billion for 16.7% stake
(+) ACHN (+18.13%) Results show 100% of patients HCV RNA undetectable at four weeks
(+) AMAT(+4.73%) Just misses Q3 sales estimate but EPS tops by a penny and outlook in line
(-) NQ (-14.20%) CFO KB Teo Resigns
(-) JWN (-3.55%) Trunk club acquisition will dilute FY14 EPS by 3%-5%
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