BG: Stock futures modestly higher as investors try to push market higher for sixth straight day
Stock futures point toward modestly higher open
NEW YORK — Stock futures were modestly higher Friday as investors look to extend gains into a sixth straight day.
Investors will get readings on consumer sentiment and wholesale inventories and sales shortly after the market opens as they hunt for further clues about an economic rebound.
Overseas markets were buoyed by strong reports out of China about industrial output, investment, loans and retail sales. Japan’s market was one of the few to decline amid worries about the weakening dollar against the yen, which could pressure exporters revenues.
Traders will get a report on the mindset of the consumer as they look for more insight into a potential economic rebound. Increasing consumer confidence and spending are considered vital to a recovery.
Consumer spending accounts for more than two-thirds of all economic activity.
The preliminary September reading of the Reuters/University of Michigan consumer sentiment index is due out at 9:55 a.m. EDT. Markets have typically rallied on positive consumer sentiment data in recent months.
A report from the Commerce Department is expected to show wholesale inventories fell in July for a record 11th consecutive month. However, economists expect sales rose for a third consecutive month.
Wholesale inventories likely fell by 1 percent in July, according to economists polled by Thomson Reuters, while sales increased 0.5 percent in the month.
Ahead of the opening bell, Dow Jones industrial average futures rose 13, or 0.1 percent, to 9,618. Standard & Poor’s 500 index futures rose 1.80, or 0.2 percent, to 1,039.20, while Nasdaq 100 index futures rose 1.00, or 0.1 percent, to 1,683.75.
Major indexes rallied for the fifth consecutive day Thursday after a decline in new claims for jobless benefits and an upbeat forecast from Procter & Gamble raised hopes for an economic rebound.
The Dow rose to its highest close since October, and has gained 347 points in the past five trading sessions.
Treasury Secretary Timothy Geithner also affirmed government officials’ recent statements that the economy is stabilizing. Testifying before a congressional watchdog panel, Geithner said the hard-hit banking sector is strong enough that the government can begin winding down emergency support programs it put in place during the peak of the credit crisis last fall.
Meanwhile, bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.36 percent from 3.35 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.15 percent from 0.13 percent late Thursday.
The dollar fell against other major currencies, while gold prices rose.
Overseas, Japan’s Nikkei stock average fell 0.7 percent. In afternoon trading, Britain’s FTSE 100 rose 0.7 percent, Germany’s DAX index gained 0.6 percent, and France’s CAC-40 rose 0.8 percent.
