US STOCKS-Wall St poised to open higher after strong GDP report
23/12/2014 14:07
* Q3 GDP revised up to 5 percent annual pace
* Durable goods orders fall short of expectations
* UMich, new home sales on tap
* Futures up: Dow 75 pts, S&P 9.25 pts, Nasdaq 14.5 pts
(Adds quote, data)
By Chuck Mikolajczak
NEW YORK, Dec 23 (Reuters) - U.S. stocks were poised for a
higher open on Tuesday, putting the Dow and S&P 500 on track to
extend a four-day rally after an unexpectedly strong report on
economic growth.
The final estimate of the U.S. gross domestic product for
the third quarter was revised up to a 5 percent annual pace, its
quickest in 11 years, from the 3.9 percent reported last month
on a stronger consumer and business spending, the government
said.
The report easily topped expectations calling for a 4.3
percent pace. ID:nLNNNNEA58
"That is a solid number, that is really what you want to
see, you want to see it in demand," said Jack Ablin, chief
investment officer at BMO Private Bank in Chicago.
"That is a huge plus, a five handle on GDP is astounding to
me, but I'm not going to turn it away - Merry Christmas."
However, durable goods orders unexpectedly fell 0.7 percent
in November, well short of expectations calling for an increase
of 2.9 percent. Non-defense capital goods orders excluding
aircraft, a closely watched proxy for business spending plans,
was unchanged after a downwardly revised 1.9 percent drop in
October. ID:nLNNNNEA59
Major Wall Street indexes have risen for four straight
sessions, pushing the benchmark S&P index .SPX to its 50th
record high of the year. The S&P has risen 5.4 percent over that
period, its best 4-day run since July 2010. The rally comes on
the heels of a selloff, sparked by a slump in oil prices that
saw the index drop nearly 5 percent from its prior record high
set on Dec. 5.
S&P 500 e-mini futures ESc1 were up 9.25 points and fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract, indicated a higher open. Dow Jones industrial average
e-mini futures 1YMc1 rose 75 points and Nasdaq 100 e-mini
futures NQc1 added 14.5 points.
The Thomson Reuters/University of Michigan's final December
reading on consumer sentiment is scheduled for release at 9:55
a.m (1455 GMT). New home sales data for November as well as the
November reading for personal income and spending are expected
at 10 a.m. (1500 GMT).
Trading volume is expected to be light this week due to the
Christmas holiday, which could increase volatility. U.S. equity
markets will open for an abbreviated session Wednesday and be
closed on Thursday.
Walgreen Co WAG.N advanced 2.3 percent to $76 in premarket
after the drugstore chain operator reported a
better-than-expected quarterly profit. ID:nL3N0U7309
China Finance Online Co Ltd JRJC.O jumped 21.2 percent to
$6.45 before the opening bell after the web-based financial
services company posted quarterly results. ID:nL3N0U72PT
(Editing by Chizu Nomiyama, Jeffrey Benkoe and W Simon)
((charles.mikolajczak@thomsonreuters.com; @ChuckMik; +1 646 223
5234; Reuters Messaging:
charles.mikolajczak.thomsonreuters.com@reuters.net))