Markets

US Stocks Poised For Gains as Fed Seen Raising Interest Rate, Housing Starts Exceed Views

U.S. equities were set to open solidly in the black as markets waited for the Federal Reserve to likely raise the interest rate for the first time in over nine years and as data showed both housing starts and permits rose more than expected.

The Federal Open Market Committee meeting of monetary policy makers concludes its meeting with an announcement at 2 p.m. E.T. Wednesday and a press conference at 2:30 p.m.

November housing starts rose to 1.173 million from a revised 1.062 million in October. Economists polled by Econoday had expected housing starts at 1.141 million. Housing permits also jumped to 1.289 million from an upwards revised 1.161 million and coming in well ahead of the 1.146 million consensus.

At 9:15 a.m., data are expected to show a 0.2% decline in industrial production in November, adding to a 0.2% decline in October. The consensus range is between a 0.6% decline and a 0.3% increase. Then at 9:45 a.m., the PMI Manufacturing Index flash indicator is expected to show an uptick to 52.8 in December from 52.6 in November.

In equities, Array BioPharma ( ARRY ) shares surged over 28% in recent pre-market trade after a study on its skin cancer drug binimetinib met its primary endpoint of improving progression-free survival. Valeant Pharmaceuticals ( VRX ) also rose, by over 3%, even as it gut its guidance for Q4 and the full year.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial up 0.67%

-S&P 500 futures up 0.60%

-Nasdaq 100 futures up 0.57%

-Nasdaq 100 pre-market indicator up 0.37%

GLOBAL SENTIMENT

Nikkei up 2.61%

Hang Seng up 2.01%

Shanghai Composite up 0.17%

FTSE-100 up 1.11%

DAX-30 up 0.89%

PRE-MARKET SECTOR WATCH

(+/-) Large cap tech: mixed

(+) Chip stocks: unchanged to higher

(+) Software stocks: unchanged to higher

(+) Hardware stocks: unchanged to higher

(+/-) Internet stocks: mixed

(+) Drug stocks: higher

(+) Financial stocks: unchanged to higher

(+/-) Retail stocks: unchanged

(+) Industrial stocks: unchanged to higher

(+) Airlines: unchanged to higher

(+) Autos: unchanged to higher

UPSIDE MOVERS

(+) HON (2.6+%) 2016 revenue guidance seen topping Street

(+) ANAD (+25.7%) Gets superior offer for co at $0.48 per share

(+) SCTY (+9.5%) Wins power purchase agreement from California, Nevada

(+) JRJC (+40.4%) Swings to Q3 profit on jump in sales

(+) HPY (+10.1%) Gets $4.3 billion cash, stock buyout offer from GPN (-9.8%)

(+) MNOV (+6.2%) Gets FDA fast track status for potential ALS drug

(+) CLSN (+15.2%) Gets China OK to conduct study on liver cancer treatment

(+) PLUG (+9.4%) NKE (+0.6%) deal reportedly moves forward

(+) AZN (+%) Buys Takeda's respiratory business for $575 million, invests in China

(+) RUN (+12.8%) Plans expansion into Connecticut

(+) CVS (+2.0%) Ups lower end of 2016 guidance, raises dividend

DOWNSIDE MOVERS

(-) JOY (-4.0%) Cuts dividend, 2016 guidance misses views

(-) ONCE (-3.5%) Prices stock offering at 3% discount

(-) PFNX (-3.0%) DOW to sell stake at $11.75 a share

(-) KTOV (-5.6%) Gives up some gains made Tuesday on hypertension drug trial results

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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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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