Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

US STOCKS-Bets on improving economy lifts Wall St futures

Published 06/19/2009, 08:27 AM
Updated 06/19/2009, 08:32 AM
NDX
-
MSFT
-
SOWGn
-
BB
-

* Recent economic data boost bets on shares

* Goldman Sachs adds Microsoft to "conviction buy" list

* 'Quadruple witching' on futures could add to volatility

* S&P futures up 6.40 pts, Nasdaq up 12.25, Dow up 52

NEW YORK, June 19 (Reuters) - U.S. stock index futures pointed to a higher open on Wall Street on Friday as a recent spate of improving economic data beckoned investors back into equity markets for a second day.

Goldman Sachs added Microsoft Corp to its Americas 'conviction buy' list on improving revenue prospects, overshadowing a disappointing outlook from BlackBerry smartphone maker Research In Motion Ltd.

Shares of the software maker and Dow component rose 2.2 percent to $24.02 in premarket trading.

The Dow and S&P 500 snapped a three-day losing streak on Thursday as data on the job market and regional manufacturing revived hopes that the recession-hit economy is stabilizing.

"Sentiment is improving and a lot of people are taking the bet that the recession is over," said Anthony Conroy, head trade for BNY ConvergEx, an affiliate of the Bank of New York, in New York.

Conroy added that the quarterly expiration and settlement of June equity options and futures, a convergence known as quadruple witching, will increase volatility throughout the session, possible pushing indexes higher.

S&P 500 futures rose 6.10 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 rose 52 points, while Nasdaq 100 futures advanced 12.25 points.

After gaining as much as 40 percent from a 12-year closing low in early March, the S&P 500 has retreated as investors reassessed the potential strength of an economic recovery. Thursday's data revived some optimism, but analysts said real improvement is needed to sustain the rally.

Government data showed the number of people staying on jobless benefits fell for the first time since January, while manufacturing in the U.S. Mid-Atlantic region contracted much less than expected in June.

After the close on Thursday, Research In Motion issued an outlook that fell short of expectations, sending the stock down 1.2 percent before the bell, even as the company reported a rise in quarterly profit that topped forecasts.

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.