Stock futures were higher this morning after Research in Motion reported strong earnings after the bell Thursday and reports Merrill Lynch could be in talks to get a $5 billion capital infusion. Thursday, U.S. stocks finished another volatile session higher after Oracle reported blow-out profits and a good outlook. The Dow industrials rose 38 points, or 0.29%, the S&P 500 gained 7 points, or 0.49%, and the Nasdaq Composite outdid them, climbing 39 points, or 1.53%.
Several economic readings are due today:
- At 8:30 a.m., November personal income and spending is due, with a rise of 0.5% and 0.7% expected respectively, following a 0.2% gain the month before for both.
- At the same time, a favored inflation measure at the Federal Reserve will be released, core PCE price index, which is expected to remain unchanged from last month at 0.2%.
- Finally, at 10:00 a.m., the University of Michigan's consumer confidence poll for December will be reported.
Overseas, Asian markets finished higher, with Japan's Nikkei shaking some of the gloom of recent days ending 1.5% higher. There have been reports that Japanese electronics rivals Toshiba and Sharp would be joining forces in the liquid crystal display business.
European shares have also been rising by midday.
Headlines this morning focus on Merrill Lynch (NYSE: MER) and Research in Motion (NASDAQ: RIMM):
Also in deal news, Holland's Philips Electronics (NYSE: PHG) said it's going to buy Respironics (NASDAQ: RESP) for $5.1 billion, or $66 a share.
All in all, I'd expect today's session to be choppy ahead of the last and shortened week of 2007. The expiration of some key options contracts may just add to the volatility.
European shares have also been rising by midday.
Headlines this morning focus on Merrill Lynch (NYSE: MER) and Research in Motion (NASDAQ: RIMM):
- The BlackBerry maker reported that calendar third-quarter profit more than doubled to $370.5 million, or 65 cents per share, compared with $175.2 million, or 31 cents per share, in the same quarter last year. The growth was attributed to strong demand for its BlackBerry smartphones and related services by consumers and businesses. Third-quarter revenue rose to $1.67 billion from $835.1 million last year. This beat analysts' expectation of earnings of 62 cents per share on $1.65 billion in revenue according to Thomson Financial. RIMM shares traded up 12.86% in premarket action.
- The U.S. investment bank, plagued by subprime losses like other Wall Street firms, may get a capital infusion of as much as $5 billion from Singapore state-owned investment agency Temasek Holdings Pte. Ltd., according to the Wall Street Journal. Merrill had already wrote down $7.9 billion in the third quarter, a number analysts expect could double.
Also in deal news, Holland's Philips Electronics (NYSE: PHG) said it's going to buy Respironics (NASDAQ: RESP) for $5.1 billion, or $66 a share.
All in all, I'd expect today's session to be choppy ahead of the last and shortened week of 2007. The expiration of some key options contracts may just add to the volatility.
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