Stock index futures rose Friday after encouraging data from China and one of two years high in the S & P 500 had investors betting on a year-end rally.
A wealth of data showed China’s imports and exports jump in November, bank lending topped forecasts and real estate investments in forward drive. As well, China increased the reserve requirement for banks, but the interest continued to hold.
The move was a milder form of monetary tightening after expectations that China could raise rates to rein in its red hot economy, although a rate hike was still possible.
Shares of Netflix Inc. (NFLX.O) jumped after the Standard & Poor’s said the movie rental business with F5 Networks Inc. (FFIV.O) and Newfield Exploration Co. (NFX.N), Office Depot Inc. (ODP.N) Replacement New York Times Co. (NYT.N) and Eastman Kodak Co. (EK.N) in the S & P 500.
As well, will Cablevision Systems Corp. (CVC.N) to replace King Pharmaceuticals Inc (KG.N), which is purchased by Pfizer Inc. (PFE.N).
Netflix rose 5.2 percent to $ 201.00 in premarket trading, F5 climbed 4.6 percent to $ 145.30 and Newfield Exploration gained 4.8 percent to $ 73.37.
Stocks closed slightly higher Thursday, with the S & P 500 ending at a high two years, investors expect a trend to continue through the rest of the year. The Nasdaq closed at its highest level since December 2007.
Andre Bakhos, director of market analytics at Lek Securities in New York, said investors optimistic about the recent rise in financials will help propel the market higher.
After lagging the rally in September and October, the S & P financial index. GSPF jumped 8.1 percent since the beginning of the month.
“Investors have waited for financials to the party to close, and we are starting to see that,” said Bakhos.
S & P 500 futures rose 4.9 points and were below fair value, a formula that evaluates pricing, taking into account interest, dividends and time to maturity of the contract. Dow Jones Industrial Average futures gained 25 points, while Nasdaq 100 futures added 7.75 points.
The S & P closed above 1,228, a resistance level that the 61.8 percent Fibonacci retracement of the 2007-2009 bear market slide, a key technical level that a barrier be proven in the past few sessions represents.
On the dates for international trade data for October is due at 8:30 pm EST (1330 GMT) and is a deficit of 43.6 billion U.S. dollars, compared with a deficit of 44 billion U.S. dollars expected in September.
Preliminary December consumer confidence index is also on tap at 9:55 am EST (1455 GMT) with an expected reading of 72.5, compared with 71.6 in the last report of November.
Tenet Healthcare Corp. (THC.N) rose 46.9 percent to $ 6.30 after the Community Health Systems Inc. (CYH.N) offered to buy it for $ 3.3 billion, but Tenet rejected the bid. Community Health was down 3.6 percent at $ 30.50 in light volume.
A temporary compromise between the U.S. President Barack Obama and Congressional Republicans to extend tax breaks to hit resistance from prominent Democrats, but failed to rattle investors Thursday
source:reuters
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