MW : U.S. futures advance before housing data, Bernanke speech
With futures gaining traction as New York traders sat down, S&P 500 futures rose 5.7 points to 1,010.40 and Nasdaq 100 futures added 6.25 points to 1,620.20. Futures on the Dow Jones Industrial Average rose 34 points.
A run-up in financial stocks, including a 21% surge for American International Group on hopes the company will hold out for good prices for the host of assets it has for sale, helped U.S stocks higher on Thursday, with the Dow Jones Industrial Average rising 70 points, the S&P 500 gaining 10 points and the Nasdaq Composite up 19 points.Data on July existing-home sales, due shortly after the open, may set the day's tone. Economists polled by MarketWatch expect sales to rise to 5 million from 4.89 million.
"Sales pushing above 5.1 million would strengthen the case that this is not just a correction after the Lehman-driven drop, but a real pick-up in activity," said Dimitry Fleming, an economist at ING.
However, there's a risk that tight credit, the inability to sell homes, fear of job losses and low appraisals will limit activity, Fleming said.European stocks quickly shrugged off opening losses, and the euro moved higher, as a euro-zone measure of purchasing managers' indexes in the manufacturing and services sector hit the 50 no-change mark -- indicating output was neither expanding nor contracting in August. See full story.
Also in the spotlight will be the Federal Reserve's annual retreat in Jackson Hole, Wyo., with Federal Reserve Chairman Ben Bernanke due to deliver the keynote speech at 10 a.m. Eastern time. See full story.
Other leading central bankers from across the world also will be in tow. "We're looking for how they think the programs will be withdrawn and the speed at which they withdraw them," said Sebastien Galy, a senior currency strategist at BNP Paribas in New York.
The Gap (GPS 18.85, +0.24, +1.29%) may be active as the clothing retailer late Thursday reported a 0.4% profit fall, as leaner inventory helped to limit the impact of a 7% drop in sales.
Salesforce.com (CRM 46.18, +1.14, +2.53%) climbed 9% in pre-open trade as the firm hiked its 2010 earnings outlook.
Overseas, the Shanghai Composite rose for the second day in a row, up 1.7%, while other leading Asian benchmarks fell.
Oil futures rose, while the dollar was weaker vs. both the euro and the Japanese yen.
