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U.S. futures higher, boosted by Fed statement; Dow Jones up 0.28%

Published 01/26/2012, 07:37 AM
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Investing.com - U.S. stock futures pointed to a higher open on Thursday, following Wednesday’s dovish Federal Reserve rate statement, while investors eyed the outcome of talks on a debt swap deal for Greece.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a rise of 0.28%, S&P 500 futures signaled a 0.32% increase, while the Nasdaq 100 futures indicated a 0.16% gain.

At the conclusion of its rate setting meeting, the Fed said economic conditions will likely “warrant exceptionally low levels for the federal funds rate at least through late 2014.” The central bank had previously pledged to keep interest rates close to zero until mid-2013.

Fed Chairman Ben Bernanke said that policy makers were “prepared to provide further monetary accommodation” and added that bond buying is “an option that’s certainly on the table,“ indicating that the bank may embark on a third round of quantitative easing.

Elsewhere, talks on a debt swap deal between debt strapped Greece and its private creditors were to resume in Athens later in the day.

Netflix was expected to be active as shares surged 19.92% in pre-market trade after the company reported better-than-expected earnings and sales late Wednesday.

The streaming video and DVD-by-mail company said it began to add customers again last quarter, after a series of blunders damaged its reputation with consumers and investors.

Nokia was also set to be in focus as the mobile phone maker posted a fourth-quarter loss of EUR1.1 billion, and sales slumped 21% compared to the same period a year earlier. Shares jumped 7.02% in pre-market trade.

Meanwhile, investors were waiting for fourth-quarter earnings from Starbucks, later Thursday. The world’s biggest coffee chain could offer an early read on the success of its lightest yet "Blonde" roast coffee and an update on its recently introduced K-cups for Green Mountain's popular Keurig one-cup brewers.

Other stocks in focus included Caterpillar and 3M, both slated to release earnings later in the day.

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 jumped 1.17%, France’s CAC 40 climbed 0.84%, Germany's DAX surged 1.32%, while Britain's FTSE 100 advanced 1.07%.

During the Asian trading session, Hong Kong's Hang Seng Index rallied 1.5%, while Japan’s Nikkei 225 Index shed 0.4%.

Later in the day, the U.S. was to release official data on initial jobless claims as well as a report on durable goods orders.


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