MW: U.S. stock futures up with economy, another deal in focus
MADRID (MarketWatch) -- U.S. stock futures were pointing to a higher start on Wednesday with a focus on the economy after upbeat talk from U.S. Federal Reserve Chairman Ben Bernanke and more deal action from Adobe Systems.
Futures for the Dow Jones Industrial Average rose 34 points to 9,637.00. Those for the S&P 500 Index added 4.1 points to 1,050, while Nasdaq 100 futures gained 5.5 points to 1,700.50.
All three major stock indexes marked new closing highs for the year on Tuesday. Markets were helped by Bernanke, who said that from a technical point, the "recession is very likely over at this point." Bernanke made his comments during a question-and-answer session at the Brookings Institution
More proof on how the economy is actually doing will come Wednesday. Data on the schedule includes August consumer prices at 8:30 a.m. Eastern, and industrial production at 9:15 a.m., along with the NAHB housing market survey for September at 1 p.m.
"Even though the market has been going up the past two weeks, sentiment hasn't gotten any more bullish. Until optimism becomes excessive, the market will continue to rally," said Bruce Bittles, chief investment strategist for Robert W. Baird. "For now, betting against the market would be fighting the tape and the Fed, and that isn't a good combination."
Among company news, Adobe Systems (ADBE 35.62, +0.43, +1.22%) may be in focus after saying late Tuesday that it plans to buy Internet-services firm Omniture Inc. (OMTR 17.32, +0.33, +1.91%) for $1.8 billion, in a deal that would mark its biggest acquisition since the blockbuster purchase of Macromedia Inc. more than four years ago.
That deal comes as the company reported declines in quarterly profit and revenue, as the recession continued to undercut sales of its design software.
Rambus Inc. (RMBS 18.03, +0.28, +1.58%) late Tuesday raised its sales forecast for the third quarter, citing stronger chip demand, which led to higher royalty payments.
After the close of trade, business software giant Oracle (ORCL 22.66, -0.06, -0.26%) reports results.
Banking giant J.P. Morgan Chase & Co. (JPM 43.26, -0.56, -1.28%) could be active as its chief financial officer Mike Cavanagh said after the close of markets Tuesday that the company may increase its dividend next year and stop adding to reserves sooner, if the economy continues to recover. See full story on J.P. Morgan.
The oil sector may be in focus -- crude oil futures are back above $70 -- on speculation of a new oil find. The Financial Times reported that Anadarko (APC 59.17, +1.41, +2.44%) may report as early as Wednesday of a new oil frontier that stretches 1,100 kilometers along the coast from Ghana to Sierra Leone. The report said Anadarko has made discoveries at the Venus well it's been drilling off Sierra Leone.
The December contract for gold futures climbed as high as $1,017.80 an ounce Wednesday in electronic trading on Globex on back of a weaker dollar, said analysts at Credit Suisse. "The market is still torn between positive fundamentals and profit-taking by some investors."
The dollar dropped 0.8% to 90.29 yen while the euro rose 0.2% to $1.4693.
European shares rose for the ninth time in ten sessions on Wednesday, with miners and construction firms in the lead, as investors bought up shares in the hope that there will be a sustained recovery in the global economy.
Asian stock markets were mostly higher after Wall Street closed at its best levels for 2009, though Chinese shares were lower, led by a drop in financial stocks and steelmakers.
