MW: U.S. stock futures edge up on economic optimism
By Steve Goldstein, MarketWatch
LONDON (MarketWatch) -- U.S. stock futures pointed to a slight rise Monday, as the improvement in the economy continues to carry world markets higher.
S&P 500 futures rose 2 points to 1,099.70 and Nasdaq 100 futures rose 5.25 points to 1,812.20. Futures on the Dow Jones Industrial Average rose 17 points.
U.S. stocks were weaker last week, hurt by concerns over tighter monetary policy after the Federal Reserve detailed when it will end some of its special liquidity programs. The Standard & Poor's 500 ended 0.4% weaker, though the tech-heavy Nasdaq Composite rose 1% after strong reports from Research In Motion and Oracle.
Year-to-date, the S&P 500 is up 22.1%.
"Although there are concerns, equities are still benefiting from improving macroeconomic fundamentals and accommodative policy. Equity valuations do not look expensive, with bottom-up earnings forecasts for the S&P 500 in 2010 of $76.83, putting the market on a forward [price-to-earnings ratio] of 14.3 times," said strategists from J.P. Morgan Asset Management.
The avalanche of snow that hit the East Coast could affect retailers.
Economists at Bank of America Merrill Lynch say the U.S. consumer has held up better than many expected through high unemployment, debt burdens, depressed asset values and tight credit.
"American consumers have been battered, but they still answer the bell when there is a good deal to be had," they said in a note to clients.
There's not much economic data due for release on Monday. World crude steel production for the 66 countries reporting to the World Steel Association was 107.5 million metric tons in November 2009, an increase of 24.2% from November 2008.
General Electric (GE 15.59, -0.20, -1.27%) may attract attention after it and France's Safran won a multi-billion-dollar contract to provide engines to China's largest commercial plane that's being developed.
Duke Energy (DUK 17.39, +0.06, +0.35%) is in talks with China's State Grid Corp. to install power transmission lines in the U.S., according to a report in The Wall Street Journal, citing people familiar with the situation.
Nokia (NOK 12.45, +0.03, +0.24%) dropped in Helsinki trade as the world's top mobile device maker saw its credit rating cut to A- from A, saying a recent update from the company suggests margins at its core devices and services division are unlikely to regain their former levels quickly.
Bucyrus International (BUCY 50.84, -1.42, -2.72%) said it's going to buy the mining unit of Terex (TEX 19.21, -0.11, -0.57%) for $1.3 billion.
In Asia, worries about a cooling of property markets dragged the Hang Seng 1.1% lower, though the Nikkei 225 rose 0.4% in Tokyo. The pan-European Dow Jones Stoxx 600 rose 0.4%.
Oil futures approached $75 a barrel, and gold futures were up nearly $4 an ounce. The dollar index (DXY 77.79, +0.02, +0.02%) was little moved at 78.18.
