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U.S. futures rise ahead of data, earnings; Dow Jones up 0.49%

Published 10/24/2013, 06:47 AM
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Investing.com - U.S. stock futures pointed to a higher open on Thursday, supported by speculation the Federal Reserve could postpone the tapering of its stimulus program, as well as by strong manufacturing data out of China.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.49% rise, S&P 500 futures signaled a 0.50% climb, while the Nasdaq 100 futures indicated a 0.49% increase.

U.S. equities found support after data earlier in the week showed that U.S. jobs growth slowed in September, cementing expectations that the Fed would continue the current pace of its asset purchase program well into next year.

Market sentiment also improved after the preliminary reading of China’s HSBC manufacturing index for October rose to a seven-month high of 50.9, up from a final reading of 50.2 in September. Economists had expected the index to tick up to 50.5.

The data offset fears over the Chinese economy, a day after market sentiment was hit by concerns that China’s central bank would tighten monetary policy to help control inflation.

Financial stocks were expected to be active, after Morgan Stanley and Bank of America said the days of paying big bonuses to lure each other’s brokers and keep their own in place may be ending.

Shares in the two lenders declined 0.38% and 0.56% respectively in extended trading.

Separately, on Thursday, Bank of America's Countrywide unit was found liable by a jury for selling Fannie Mae and Freddie Mac thousands of defective loans in the first mortgage-fraud case brought by the U.S. government to go to trial.

In the tech sector, Hewlett-Packard slipped 0.08% after hours, amid reports the company is seeking buyers for some of its mobile-computing patents, in an effort to bolster its financial position.

Elsewhere, Boston Scientific saw shares jump 0.98% in late trading after the maker of heart devices announced plans to eliminate an additional 1,100 to 1,500 jobs through 2015 as part of a new restructuring program.

Other stocks likely to be in focus included Ford, 3M, Amazon.com, Microsoft, Western Digital and Zynga, all scheduled to report quarterly earnings later in the day.

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 climbed 0.59%, France’s CAC 40 added 0.24%, Germany's DAX gained 0.72%, while Britain's FTSE 100 rose 0.47%.

During the Asian trading session, Hong Kong's Hang Seng Index declined 0.71%, while Japan’s Nikkei 225 Index advanced 0.42%.

Later in the day, the U.S. was to release data on initial jobless claims, the trade balance and new home sales.


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