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US STOCKS-Futures rise after strong tech earnings

Published 09/17/2010, 07:40 AM
Updated 09/17/2010, 07:44 AM

* Oracle, RIMM jump in premarket after results

* Key 1,130 level for S&P 500 could be tested

* Futures up: S&P 5 pts, Dow 40 pts, Nasdaq 9.5 pts

NEW YORK, Sept 17 (Reuters) - U.S. stock index futures rose on Friday as solid reports from technology bellwethers Oracle and Research In Motion put stocks on the verge of breaking through a key level that has stymied investors for months.

* No. 3 software maker Oracle Corp jumped 4.4 percent to $26.47, while BlackBerry maker Research In Motion Ltd surged 5.3 percent at $48.95 in premarket trading. Both recorded better-than-expected results late Thursday and gave outlooks that topped expectations.

* Futures indicated stocks were poised to rise nearly 1 percent at the open, which could lift the S&P 500 above the much-watched technical level of 1,130. That point has proved to tough to break through since June, and a push above there could be a bullish sign.

* Investors were eyeing the August Consumer Price Index due at 8:30 a.m. EDT (1230 GMT). Economists in a Reuters survey expect a 0.2 percent increase, compared with a 0.3 percent rise in July. Preliminary September consumer sentiment will be released at 9:55 a.m. EDT (1355 GMT), with a reading of 70.0 expected compared with 68.9 in the final August report.

* S&P 500 futures rose 5 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 added 40 points, and Nasdaq 100 futures gained 9.5 points. Wall Street was little changed on Thursday.

* Texas Instruments Inc shares rose 3.4 percent to $25.83 as the chipmaker increased its stock repurchase program and boosted its quarterly dividend by 8 percent.

* In mergers and acquisition news, Johnson & Johnson said it is in talks to buy Dutch biotech Crucell NV for 1.75 billion euros ($2.3 billion).

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