Forexpros – U.S. stock futures pointed to a mildly higher open on Wednesday, as investors looked towards U.S. housing data later in the day, which was expected to show further improvement in the U.S. economy.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a gain of 0.3%, S&P 500 futures signaled a 0.25% rise, while the Nasdaq 100 futures pointed to a modest increase of 0.2% at the open.
U.S. equities came under pressure on Tuesday, with losses fuelled by concerns over a deeper-than-expected slowdown in Chinese economic growth after mining giant BHP Billiton said that Chinese demand for iron ore was “flattening out.”
But U.S. stocks have remained supported in recent weeks on the view that the economic recovery in the U.S. is gaining traction. Government data on Tuesday showed that number of building permits issued in the U.S. in February rose to the highest level since October 2008, while housing starts dipped only slightly.
Traders will be eyeing the release of industry data on existing home sales shortly after Wednesday’s opening bell.
Among stocks in focus, business software giant Oracle climbed 2.5% in premarket trade after reporting an 18% increase in fiscal third quarter profit, as new software sales came in at the high end of the company’s forecast, offsetting a decline in hardware revenue.
Krispy Kreme Doughnuts saw shares jump 3.65% after the company swung to a fourth quarter profit, as results were boosted by an 8.3% gain in same-store sales. Shares are up 30% since the start of 2012.
Shares in Hartford Financial Services Group rallied 7.1% on reports that it is exiting the annuity business and was considering “strategic alternatives” for part of its life insurance business.
Social networking website LinkedIn surged 6.15% after Goldman Sachs upgrade the stock to a ‘buy’ and set a price target of USD135 on the stock, 32% higher from where it closed Tuesday.
On the downside, oilfield service provider Baker Hughes dropped 4.3% after forecasting first quarter operating profit that came in below market expectations, as rapidly changing market conditions have hurt its pressure pumping product line in North America.
General Mills shares dipped 0.2% after the packaged food manufacturer reported a 0.2% drop in fiscal third quarter profit, as a jump in input costs cancelled out stronger-than-expected revenue growth.
In deal news, U.S. staffing provider On Assignment soared 24.2% after it agreed to acquire privately held rival Apex Systems for USD600 million. On Assignment said it expected the deal to significantly add to 2012 earnings.
Shares in Discover Financial Services could be active, as the company was set to release company earnings after Wednesday’s closing bell.
Across the Atlantic, European stock markets edged up, but were off the highest levels of the session, as the previous day’s steep declines created bargain buying opportunities for investors.
The EURO STOXX 50 added 0.1%, France’s CAC 40 rose 0.1%, Germany’s DAX gained 0.2%, while Britain’s FTSE 100 eased up 0.1%.
During the Asian trading session, Hong Kong’s Hang Seng Index retreated 0.1%, while Japan’s Nikkei 225 Index snapped a five-day win streak, shedding 0.55%, as trading resumed after a one-day holiday.
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