Stock index futures pointed to a higher Wall Street open on Thursday as a stronger-than-expected profit from technology bellwether IBM suggested that the credit crunch is not stifling all business demand.
Technology shares were poised to lead gains as investors scour the market for beaten down stocks, a day after Wall Street fell for a sixth straight session as recession and credit fears eclipsed joint interest rate reductions by global central banks to thaw the credit freeze.
Shares of International Business Machines, a Dow component, rose 5% before the bell, and its boost also buoyed other technology heavyweights, including Apple, up 14%.
S&P 500 futures rose 19 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 199 points and Nasdaq 100 futures gained 31.75 points.
Trading was likely to be light, with other market participants away for the Jewish Yom Kippur holiday.
IBM shares rose to $95 before the bell, while Apple shares climbed to $92.50.
Besides technology, financial shares are also in the spotlight following the expiration of a U.S. Securities and Exchange Commission's ban on short selling in more than 950 financial stocks.
Additionally, the New York Times reported on its Web site that, according to government officials, the U.S. Treasury Department is considering taking ownership stakes in many U.S. banks to try to restore confidence.
Lowered profit estimates by some major retailers, including TJX Cos, might spur some caution, nonetheless. TJX shares fell more than 5% before the bell at $26.21 after the off-price retailer slashed its profit outlook.
On the economic front, a government report showed the number of U.S. workers filing new claims for jobless benefits fell 20,000 last week, in line with forecasts as the impact of hurricanes Gustav and Ike eased.
August wholesale trade is due at 10 a.m..
Source: Reuters
Technology shares were poised to lead gains as investors scour the market for beaten down stocks, a day after Wall Street fell for a sixth straight session as recession and credit fears eclipsed joint interest rate reductions by global central banks to thaw the credit freeze.
Shares of International Business Machines, a Dow component, rose 5% before the bell, and its boost also buoyed other technology heavyweights, including Apple, up 14%.
S&P 500 futures rose 19 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 199 points and Nasdaq 100 futures gained 31.75 points.
Trading was likely to be light, with other market participants away for the Jewish Yom Kippur holiday.
IBM shares rose to $95 before the bell, while Apple shares climbed to $92.50.
Besides technology, financial shares are also in the spotlight following the expiration of a U.S. Securities and Exchange Commission's ban on short selling in more than 950 financial stocks.
Additionally, the New York Times reported on its Web site that, according to government officials, the U.S. Treasury Department is considering taking ownership stakes in many U.S. banks to try to restore confidence.
Lowered profit estimates by some major retailers, including TJX Cos, might spur some caution, nonetheless. TJX shares fell more than 5% before the bell at $26.21 after the off-price retailer slashed its profit outlook.
On the economic front, a government report showed the number of U.S. workers filing new claims for jobless benefits fell 20,000 last week, in line with forecasts as the impact of hurricanes Gustav and Ike eased.
August wholesale trade is due at 10 a.m..
Source: Reuters
2 comments:
And then it call crashing down...Almost 700 pts today. What was the bail-out supposed to do again?!?
The rescue package is still in the setup stages, and it has not yet bought one single asset from a financial institution. It will take a little bit of time, but the Treasury is working on the project. Current estimates are for the first assets to be purchased within a few weeks according to reports.
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