U.S. futures rise on China data; Bernanke to speak

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U.S. futures rise on China data; Bernanke to speak

Post by Shirley on Wed Jul 13, 2011 7:45 am

July 13, 2011, 7:14 a.m. EDT

U.S. futures rise on China data; Bernanke to speak

Data shows China grew more than expected in second quarter

By Polya Lesova, MarketWatch

LONDON (MarketWatch) — U.S. stock futures rose Wednesday, as better-than-expected Chinese growth data buoyed sentiment ahead of eagerly awaited congressional testimony by the chairman of the Federal Reserve.

Futures on the Dow Jones Industrial Average /quotes/zigman/1785993 DJ1U +0.48% climbed 55 points to 12,468 and those on the Standard & Poor’s 500 stock index /quotes/zigman/1277190 SP1U +0.63% gained 6.30 points to 1,317.

Nasdaq 100 futures /quotes/zigman/876546 ND1U +0.67% advanced 14.50 points to 2,359.

The moves came following gains for Asian equity markets overnight after data showed that the Chinese economy grew 9.5% in the second quarter from the same period a year ago, which was slightly above expectations. Hong Kong’s Hang Seng index rose 1.2% and China’s Shanghai Composite climbed 1.5%.

In Europe, stocks swung between gains and losses. The pan-European Stoxx 600 index /quotes/zigman/2380150 XX:SXXP +0.12% was marginally lower in midday trading.

The blue-chip Dow index /quotes/zigman/627449/delayed DJIA -0.47% dropped 0.5% Tuesday after Moody’s Investors Service downgraded Ireland’s credit rating to junk status, adding to worries about the debt crisis in Europe. Earlier in the session, minutes from the Fed’s June meeting had shown that a minority of policy makers supported providing extra stimulus to the economy.

Given the minutes, investors will be watching closely Wednesday’s testimony on monetary policy and the economy by Fed Chairman Ben Bernanke to the House Financial Services Committee, due to begin at 10 a.m. Eastern time.

“We still think the bar for rolling out another [round of quantitative easing] is high at this stage with the current inflation outlook uncertain, but the official Fed statement yesterday perhaps left the door more open than before even it showed a divided Fed,” Deutsche Bank said in a note.

Before the U.S. stock market opens, data on import prices will be released at 8:30 a.m. Eastern.

In the currency markets, the euro rose 0.6% to $1.4059. The dollar index /quotes/zigman/1652083 DXY -0.55% , which tracks the performance of the greenback against a basket of other major currencies, dropped 0.5% to 75.675.

Meanwhile, gold futures continued their advance after posting a nominal settlement record on Tuesday. Gold for August delivery rose $11.80 to $1,574.10 an ounce in electronic trading on Globex.

Crude oil for August delivery slipped 1 cent to $97.42 a barrel.

On the corporate front, medical technology firm Kinetic Concepts Inc. /quotes/zigman/341876/quotes/nls/kci KCI +5.20% said it will be acquired by a consortium of funds for $68.50 per share in a deal valued at $6.3 billion. Shares of Kinetic rallied 4.5% to $67.40 in premarket trading.

Meanwhile, General Mills Inc. /quotes/zigman/227548/quotes/nls/gis GIS +0.52% is scheduled to hold an investor presentation Wednesday.
/quotes/zigman/1785993
add Add DJ1U to portfolio DJ1U
Dow Jones Industrial Average (CBOT) Sep 2011
$ 12,473.00
+60.00 +0.48%
Volume: 118
July 13, 2011 6:00a
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/quotes/zigman/1277190
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S&P 500 - Electronic (CME) Sep 2011
$ 1,318.70
+8.00 +0.61%
Volume: 2,608
July 13, 2011 6:34a
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/quotes/zigman/876546
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Nasdaq 100 Index - Electronic (CME) Sep 2011
$ 2,360.25
+15.75 +0.67%
Volume: 164
July 13, 2011 6:00a
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/quotes/zigman/2380150
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STOXX Europe 600 Index EUR
268.49
+0.33 +0.12%
Volume: 0.00
July 13, 2011 1:30p
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/quotes/zigman/627449/delayed
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Dow Jones Industrial Average
12,446.88
-58.88 -0.47%
Volume: 162.64M
July 12, 2011 4:30p
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U.S. Dollar Index (DXY)
75.65
-0.42 -0.55%
Volume: 0.00
July 13, 2011 7:35a
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/quotes/zigman/341876/quotes/nls/kci
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Kinetic Concepts Inc.
$ 67.84
+3.35 +5.20%
Volume: 1.20M
July 13, 2011 7:44a
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/quotes/zigman/227548/quotes/nls/gis
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General Mills Inc.
$ 37.05
+0.19 +0.52%
Volume: 4.31M
July 12, 2011 4:00p
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Polya Lesova is chief of MarketWatch’s London bureau.

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Shirley

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