💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

US STOCKS-Futures flat ahead of Bernanke speech, data

Published 10/15/2010, 08:09 AM
Updated 10/15/2010, 08:12 AM

* Eyes on Bernanke, data for QE2 clues

* GE revenues misses estimate

* Google jumps after results

* Futures: Dow off 19 pts, S&P off 0.9 pts, Nasdaq up 4.75

* For up-to-the-minute market news see [STXNEWS/US]

By Chuck Mikolajczak

NEW YORK, Oct 15 (Reuters) - U.S. stock index futures were little changed on Friday, as investors awaited a speech by U.S. Federal Reserve Chairman Ben Bernanke and a host of economic data for insight into the next round of the Fed's monetary easing.

Bernanke is scheduled to speak at 8:15 a.m. EDT (1215 GMT) at the Federal Reserve Bank of Boston's "Revisiting Monetary Policy in a Low-Inflation Environment" conference.

"Everybody is going to watch closely because they are looking for a hint on quantitative easing," said Barry Ritholtz, director of equity research at Fusion IQ in New York.

"That is pretty much a bullish speech title. Whenever the Fed is talking about a low inflation environment it means they feel they have latitude to engage in broad-based monetary policy. Right now they are extremely accommodative, and they are implying they are going to become more accommodative."

At 8:30 a.m. EDT (1230 GMT) the U.S. Commerce Department will release September retail sales numbers. Economists expect a 0.4 percent month-over-month increase, a repeat of the August rise. Excluding automobiles, sales were also forecast to rise 0.4 percent, compared with a 0.6 percent increase in August.

Also at 8:30 a.m., the Labor Department releases the September consumer price index. Economists look for CPI to rise 0.2 percent versus a 0.3 percent increase in August.

The Thomson Reuters/University of Michigan Surveys of Consumers preliminary October consumer sentiment index is set for release at 9:55 a.m. EDT (1355 GMT) Economists expect a reading of 69.0, compared with 68.2 in the final September report.

Other macroeconomic data Friday will include U.S. business inventories for August at 10 a.m. EDT (1400 GMT), expected to rise 0.5 percent, and the Empire State Manufacturing survey at 8:30 a.m.

S&P 500 futures fell 0.9 point but 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 lost 19 points, and Nasdaq 100 futures added 4.75 point.

General Electric Co said profit from continuing operations increased for the second straight quarter, but revenue came in below estimates on slack demand for heavy equipment. GE fell 2.7 percent to $16.69 in premarket trade. [ID:nN15165353]

Nasdaq futures were boosted by Google Inc , which jumped 10 percent to $594.04 premarket a day after it reported results that eased fears that big spending would erode margins. Net revenue surged 25 percent in the third quarter, blowing past Wall Street targets. [ID:nN14187391]

Mattel Inc reported a slightly higher-than-expected quarterly profit, helped by classic brands like Barbie and newer lines like Disney Princess and Monster High dolls. It also struck a positive note ahead of the busiest selling period of the year. The stock dropped 7.2 percent to $22.26. [ID:nN14136493]

European shares were little changed Friday morning, with technology shares boosted by upbeat Google results, offsetting declines in heavyweight miners as metals prices eased from earlier highs.

Banks led U.S. stocks lower Thursday as investors fretted that a widening foreclosure crisis could undermine the market's strength over the last five weeks. (Editing by Padraic Cassidy and Jeffrey Benkoe)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.