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U.S. futures hold on to gains after PPI data; Dow up 0.3%

Published 08/17/2011, 09:00 AM
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Investing.com – U.S. stock futures pointed to a higher open on Wednesday, as stronger-than-expected earning reports from retailers such as Staples and Target boosted market sentiment.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a gain of 0.3%, the S&P 500 futures rose 0.45%, while the Nasdaq 100 futures advanced 0.25%.

Stock index futures held on to gains after official data showed that both U.S. producer price inflation and core producer price inflation rose more-than-expected in July.

Meanwhile, in earnings news, the largest U.S. office supply retailer Staples saw shares rally 8.3% in pre-market trade after it said second quarter profit rose 36% to USD176.4 million. Revenue in the period rose 5.2% to USD5.82 billion, above expectations for revenue of USD5.64 billion.

Discount retailer Target saw shares climb 5.5% after reporting better-than-expected second quarter earnings, boosted by higher same-store sales at its retail segment and growth in earnings at its credit card segment.

On the downside, shares in the second largest U.S. personal computer maker Dell tumbled 7.2% after reporting lower-than-expected second quarter revenue, citing sluggish consumer demand. The downbeat results prompted the company to cut its earnings outlook for the rest of the year.

The world’s largest agriculture equipment manufacturer Deere & Company saw shares slump 1.8% despite reporting better-than-expected fiscal third quarter earnings, as global farm equipment demand increased. The upbeat results prompted the company to raise its full-year earnings outlook.

Other notable earnings scheduled for Wednesday included technology firms JDS Uniphase and NetApp, as well as retailer Limited Brands.

Across the Atlantic, European stock markets were mixed after a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy failed to ease concerns over the euro zone’s ongoing sovereign debt crisis.

The EURO STOXX 50 edged 0.1% lower, France’s CAC 40 rose 0.5%, Germany's DAX fell 0.85%, while Britain's FTSE 100 retreated 0.4%.              

During the Asian trading session, Hong Kong’s Hang Seng Index rose 0.38%, while Japan’s Nikkei 225 Index declined 0.55%.

Later in the day, the U.S. was to produce government data on crude oil stockpiles.

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