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US STOCKS-Futures rise as Fed fuels risk appetite

Published 11/04/2010, 07:42 AM
Updated 11/04/2010, 07:44 AM

* Weaker dollar drives metals prices, mining stocks higher

* Canadian govt blocks BHP's bid for Potash

* Futures up: S&P 7.2 pts, Dow 60 pts, Nasdaq 12 pts

NEW YORK, Nov 4 (Reuters) - U.S. stocks index futures rose on Thursday as more monetary stimulus from the U.S. Federal Reserve aimed at boosting the ailing economy fueled investor risk appetite.

* The Fed plan to buy $600 billion in Treasuries, announced on Wednesday, was more than anticipated but less than hoped for by many economists.

* Mining stocks were among the biggest gainers in the European market, with metal prices driven by a weaker U.S. dollar after the Fed announcement. The dollar was down 0.7 percent against a basket of major currencies.at $77.41 in premarket trade after the Canadian government blocked its $39 billion bid for Potash Corp of Saskatchewan Inc. New York-traded shares of Potash fell 3.8 percent to $140.04 premarket.

* U.S.-listed shares of Unilever Plc was up 5.6 percent to $30.99 premarket after it matched forecasts with a rise in third-quarter sales.

* New claims for unemployment benefits, due at 8:30 a.m. EDT (1230 GMT), are expected to edge up to 443,000 after dropping to a three-month low of 434,000 the week before. The forecast is based on a survey by Reuters of 42 economists. It is the final jobless report before the closely watched non-farm payrolls data on Friday.

* S&P 500 futures rose 7.2 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 gained 60 points, and Nasdaq 100 futures rose 12 points.

* U.S. retailers were poised to report their weakest monthly sales gains in six months as the warmest October in decades and a weak recovery crimped demand.

* October same-store sales at key retailers ranging from Saks Inc to Abercrombie & Fitch Co will give investors a better idea of where to park their money ahead of the biggest selling season of the year.

* Costco Wholesale Corp, the largest U.S. warehouse club operator, said October sales rose more than expected, helped by an increase in gas prices and the effects of strong foreign currencies.

* Kraft Foods Inc, North America's largest packaged food maker, is due to report quarterly results less than two months after it said it hopes to add $1 billion in additional revenue by 2013 after its purchase of Britain's Cadbury.

* Other companies reporting include coffee chain Starbucks Corp.

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