MW : U.S. stock futures hold highs before orders data
S&P 500 futures fell six-tenths of a point to 1,025.50 while Nasdaq 100 futures rose 1.5 points to 1,638.00. Futures on the Dow Jones Industrial Average rose 36 points.
Surprisingly strong consumer confidence and slowing house-price falls, along with the reappointment of Federal Reserve Chairman Ben Bernanke, helped nudge U.S. stocks higher on Tuesday, with the Dow Jones Industrial Average rising 30 points, the Nasdaq Composite adding 6 points and the S&P 500 rising 2 points.The rise in consumer confidence supports the scenario of a gradual recovery of the U.S. economy, which should officially emerge from the recession in the third quarter, primarily on the back of the stimulus plan and diminishing inventory run-downs," said Jean-Baptiste Pethe, an economist at Exane BNP Paribas, in a note to clients.
Wednesday features the release of durable-goods orders for July, which will be released at 8:30 a.m. Eastern time, and new-home sales for July, due at 10 a.m.Economists polled by MarketWatch expect a 4% improvement in orders and a rise in new-home sales to 395,000 from 384.000.
The Treasury is selling $39 billion of five-year notes, and Atlanta Fed President Dennis Lockhart will discuss the economy at 12 p.m.
Health-care stocks also will be in the spotlight after the death of Sen. Edward Kennedy, a noted advocate for health reform. Speculation will center on whether Kennedy's death pushes the languishing reform efforts through Congress.
Results are due from Williams-Sonoma (WSM 15.47, +0.91, +6.25%) , Canadian Imperial Bank of Commerce (CM 63.22, +2.29, +3.76%) and New York & Co. (NWY 4.76, +0.41, +9.43%) .
WPP (WPPGY 42.31, -0.31, -0.73%) , the U.K. advertising giant, reported a 48% first-half profit fall and forecast 2010 revenue to be flat despite events including the FIFA World Cup and the Winter Olympics next year.
Alcatel-Lucent (ALU 3.50, +0.05, +1.45%) stormed 17% higher in Paris. Reuters reported unconfirmed market speculation of a Chinese bid, while a French brokerage lifted its rating on the telecommunications-equipment firm.
Overseas, the Nikkei 225 rose 1.4% in Tokyo, while stronger-than-forecast German business climate data wasn't enough to lift stocks in the country, as the DAX fell 0.4%.
Oil futures rose 21 cents to $72.26 a barrel ahead of weekly energy inventories data, due 10:30 a.m. Eastern time. Gold futures rose nearly $5 an ounce.
