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Stock Futures Inch Higher 09/10 06:20
Stock futures inched higher Friday as investors bet the economy will
continue to grow, albeit slowly.
NEW YORK (AP) -- Stock futures inched higher Friday as investors bet the
economy will continue to grow, albeit slowly.
Domestic economic reports over the past two weeks have topped modest
forecasts, sending stocks higher. While the economy is not robust by any
measure, beating economists' estimates has reduced worries about the economy
falling back into recession.
A report due out later Friday is expected to show wholesale inventories and
sales rose in July, adding to the signs of continued expansion. Economists
polled by Thomson Reuters forecast wholesale inventories rose 0.4 percent in
July. Sales likely grew 0.3 percent, snapping two straight months of declines.
The Commerce Department report is due out at 10 a.m. EDT.
Wholesalers don't typically stock up on more goods unless there is an
expectation that retail sales will pick up in the coming months, so Friday's
report could be a good indicator that retail sales might improve soon. Shoppers
have cut back on their spending recently because of job worries.
The market's September rally paused only once when concerns about the health
of European banks burdened by government debt resurfaced. European markets all
dropped Friday after a report that German banking giant Deutsche Bank AG is
considering raising new cash through a stock sale. The report came out Thursday
afternoon, so U.S. markets already had a chance to react to the news.
Ahead of the opening bell, Dow Jones industrial average futures rose 16, or
0.2 percent, to 10,354. Standard & Poor's 500 index futures rose 2.60, or 0.2
percent, to 11,000.20, while Nasdaq 100 index futures rose 5.50, or 0.3
percent, to 1,888.75.
The Dow has risen six out of the past seven days, and is up 4 percent in
September after a big drop a month earlier. Because stocks fell Tuesday, the
index would need to rise about 33 points Friday to end the holiday-shortened
week in positive territory.
Volume will likely remain light Friday because of the Jewish holiday, Rosh
Hashanah. Low volume can exaggerate market movements.
Britain's FTSE 100 fell 0.2 percent, Germany's DAX dropped 0.4 percent, and
France's CAC-40 fell 0.3 percent.
Bond prices rose slightly, indicating not all investors are confident about
a recovery. The yield on the 10-year Treasury note, which moves opposite its
price, fell to 2.75 percent from 2.76 percent late Thursday. Its yield is used
to help set interest rates on mortgages and other consumer loans.
(KM)
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