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Stock futures were markedly higher this morning after Federal Reserve chief Ben Bernanke hinted of further rate cuts and as oil prices declined below $90 a barrel. Several key economic indicators are scheduled for release today.Yesterday, U.S. stocks rose again despite oil prices surging and Sears 99% profit decline. The Dow industrials rose 22 points, or 0.17%, the Nasdaq Composite rose 5 points, or 0.2%, and the S&P 500 ended nearly flat, 0.05% higher.
Today, several economic indicators will be reported:
- At 8:30 a.m. EST, the Commerce Department reports on October personal income and spending. Economists surveyed by Briefing.com forecast that income rose 0.4% in October and spending gained 0.3%, same as last month.
- At the same time a closely watched inflation measure will be released. Core PCE deflator, is expected to have risen 0.2%, again, same as September.
- At little after the market opens, a survey of manufacturing executives in the Chicago area is due.
- At 10:00 a.m. EST a report on October construction spending is scheduled.
What investors are focusing on this morning, however, is Bernanke's words from last night. The Fed chairman hinted that another interest rate cut may be needed to bolster the economy because of the worsening credit crunch, a deepening housing slump and rising energy prices probably will affect consumers in the coming months.
Investors are also encouraged by falling oil prices as they have fallen below $90 a barrel for the first time in five weeks. This is after yesterday oil rallied following fire in a pipeline. Later, however it was clear most of the network was quickly returned to service.
Overseas, Asian stocks ended higher following Bernanke's comments. European shares also rose for the third straight session today for the same reason.
Still, the White House lowered its projection for economic growth next year and raised its forecast for unemployment due to the deteriorating housing market. Inflation was expected to moderate. Gross domestic product, or GDP, will grow by 2.7% next year according to these new projections, down from a 3.1% rate as per Its old projection.
Also, Treasury Secretary Henry Paulson met executives from loan servicing companies to discuss a plan to extend lower, introductory rates on home loans about to reset higher.
From the corporate side, Dell Inc. (NASDAQ: DELL) reported earnings after the close yesterday that nearly met expectations. Comments made executives cause investors to worry about future performance and DELL shares tumbled over 9.3% in premarket trading.
Investors are also encouraged by falling oil prices as they have fallen below $90 a barrel for the first time in five weeks. This is after yesterday oil rallied following fire in a pipeline. Later, however it was clear most of the network was quickly returned to service.
Overseas, Asian stocks ended higher following Bernanke's comments. European shares also rose for the third straight session today for the same reason.
Still, the White House lowered its projection for economic growth next year and raised its forecast for unemployment due to the deteriorating housing market. Inflation was expected to moderate. Gross domestic product, or GDP, will grow by 2.7% next year according to these new projections, down from a 3.1% rate as per Its old projection.
Also, Treasury Secretary Henry Paulson met executives from loan servicing companies to discuss a plan to extend lower, introductory rates on home loans about to reset higher.
From the corporate side, Dell Inc. (NASDAQ: DELL) reported earnings after the close yesterday that nearly met expectations. Comments made executives cause investors to worry about future performance and DELL shares tumbled over 9.3% in premarket trading.
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