Stock Watch
Stocks are set to open higher Thursday, with the help of mostly positive economic data and earnings results. Thirty minutes before the start of trading in New York, stock index futures indicated that the Dow Jones Industrials ($INDU) might gain more than 30 points in early trading. The NASDAQ ($COMPQ) is expected to open five or ten points higher. Personal incomes and spending improved during the month of December. According to latest statistics from the Commerce Department, consumer spending rose at a .7% rate during that period. Incomes rose .5%. The numbers fell precisely in-line with economist estimates. Meanwhile, the Personal Consumption Expenditures [PCE] index of the spending report, which is considered one of the Fed’s favorite gauges of inflation, rose just .1%. Economists were looking for the PCE to increase by .2%. Meanwhile, the latest weekly jobless claims numbers came in strong. According to the Labor Department, the number of filings for jobless benefits fell by 20,000 to 307,000 in the week ended January 27. Economists were looking for a decline to 315,000. The four-week average fell to 305,000 and its lowest levels in a year.
The Institute of Supply Management [ISM] manufacturing index is due out at 10:00 a.m. Eastern time. Economists expect the index to rise to 51.5 in January, up modestly from 51.4 the month before. January auto and truck sales results are due out this afternoon. Key monthly payroll data is scheduled for Friday morning. In stock news Thursday, Dell Computer (DELL) will be active on news Founder Michael Dell will resume his role as Chief Executive of the company. The computer maker also issued a fourth quarter earnings and revenue warning. However, JP Morgan upgraded the stock to “neutral” from “underweight” following the news. DELL was recently up $1.40 to $25.62.Exxon Mobile (XOM) will help lift the industrial average early in the trading session after the oil giant reported fourth quarter earnings per share of $1.69, which beat analyst estimates by 18 cents. Archer Daniels Midland (ADM) added $1.30 to $3.30 after the company reported 67 cents a share in fourth quarter earnings, compared to analyst estimates of 62 cents. Google (GOOG) is a bit lower this morning on the heels of a better-than-expected earnings report released yesterday afternoon. GOOG is down $2.00 to $499.50 a share. Crude oil is off 14 cents and near $58.00 a barrel. Crude is up $8.00 from its lows seen two weeks ago. Gold has been ripping higher lately as well. The precious metal has added almost $20.00 during the past three trading sessions. This morning, [February] gold is up $8.30 to $660.40 an ounce.
Overall, the day’s news has been positive enough to lift stock index futures into positive territory in early action. The economic data was solid, but the weak reading from the core PCE index is an indicator that inflationary pressures are not running out of control. The day’s earnings news is mostly positive. As a result, stocks are expected to start the month of February on a strong note, but with key economic on the docket later today and tomorrow.
Frederic Ruffy
The Institute of Supply Management [ISM] manufacturing index is due out at 10:00 a.m. Eastern time. Economists expect the index to rise to 51.5 in January, up modestly from 51.4 the month before. January auto and truck sales results are due out this afternoon. Key monthly payroll data is scheduled for Friday morning. In stock news Thursday, Dell Computer (DELL) will be active on news Founder Michael Dell will resume his role as Chief Executive of the company. The computer maker also issued a fourth quarter earnings and revenue warning. However, JP Morgan upgraded the stock to “neutral” from “underweight” following the news. DELL was recently up $1.40 to $25.62.Exxon Mobile (XOM) will help lift the industrial average early in the trading session after the oil giant reported fourth quarter earnings per share of $1.69, which beat analyst estimates by 18 cents. Archer Daniels Midland (ADM) added $1.30 to $3.30 after the company reported 67 cents a share in fourth quarter earnings, compared to analyst estimates of 62 cents. Google (GOOG) is a bit lower this morning on the heels of a better-than-expected earnings report released yesterday afternoon. GOOG is down $2.00 to $499.50 a share. Crude oil is off 14 cents and near $58.00 a barrel. Crude is up $8.00 from its lows seen two weeks ago. Gold has been ripping higher lately as well. The precious metal has added almost $20.00 during the past three trading sessions. This morning, [February] gold is up $8.30 to $660.40 an ounce.
Overall, the day’s news has been positive enough to lift stock index futures into positive territory in early action. The economic data was solid, but the weak reading from the core PCE index is an indicator that inflationary pressures are not running out of control. The day’s earnings news is mostly positive. As a result, stocks are expected to start the month of February on a strong note, but with key economic on the docket later today and tomorrow.
Frederic Ruffy
posted by Stock Administrator @ 12:40 PM
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