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U.S. futures edge higher as markets eye data, Fed; Dow Jones up 0.03%

Published 08/28/2012, 07:00 AM
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Investing.com - U.S. stock futures pointed to a moderately higher open on Tuesday, as investors awaited the release of U.S. economic reports later in the day, as well as a highly anticipated speech by Federal Reserve Chairman Ben Bernanke on Friday.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.03% rise, S&P 500 futures signaled a 0.06% increase, while the Nasdaq 100 futures indicated a 0.10% gain.

Market participants were looking ahead to a speech by Fed Chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming, on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.

The European Central Bank said its president Mario Draghi would be unable to attend the summit, due to his "heavy workload" in the next few days.

Meanwhile, sentiment remained under pressure after the Japanese government cut its view of the economy for the first time in 10 months, as slowing exports weighed on production and consumer spending failed to expand.

The downgrade highlighted the vulnerability of Japan's economic recovery to slowing global growth, as concerns over the impact of the euro zone debt crisis weigh on demand in key export markets such as China.

Aircraft companies were expected to be active, after Airbus won a USD7 billion order to help more than triple Philippine Airlines’ fleet, beating its U.S. rival Boeing to a deal despite U.S. support for Manila in a diplomatic dispute with China.

Separately, Boeing said that a temporary assembly line to boost production of its new carbon-fiber 787 Dreamliner planes is up and running in Everett, Washington.

The pharmaceutical sector was also likely to be in focus, after U.S. health regulators on Monday approved Gilead Sciences' four-drug combination pill to treat HIV. Shares in Gilead were up 0.12% in after-hour trade.

Meanwhile, Forest Laboratories said its board adopted a shareholder rights plan in response to activist investor Carl Icahn's recent accumulation of the drugmaker's common stock.

Elsewhere, tech giant Apple was expected to remain in the spotlight, as the iPhone maker rose to an all-time high on Monday, after winning a USD1.05-billion patent lawsuit against rival Samsung Electronics.

The company is now seeking a U.S. sales ban on eight models of Samsung smartphones and the extension of a preliminary ban on a tablet computer.

Other stocks in focus included Campbell Soup and Smithfield Foods, due to report earnings before the opening bell.

Across the Atlantic, European stock markets were mixed to lower. The EURO STOXX 50 fell 0.34%, France’s CAC 40 dropped 0.52%, Germany's DAX declined 0.36%, while Britain's FTSE 100 eased up 0.02%.

During the Asian trading session, Hong Kong's Hang Seng Index edged up 0.07%, while Japan’s Nikkei 225 Index declined 0.57%.

Later in the day, the U.S. was to release a report on consumer confidence, a leading indicator of economic health, as well as industry data on house price inflation.


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