U.S. stock futures advanced Wednesday morning, indicating Wall Street is set for a strong start at the open following gains in global markets on more confidence about the U.S. economy. A rise in commodity and oil prices helped boost confidence as well and the Supreme Court clearing the way for Chrysler to exit bankruptcy.Overseas, global stock markets rose sharply Wednesday on higher commodity prices and renewed hopes about the state of the U.S. banking sector after ten banks were cleared to repay TARP funds Tuesday.
Meanwhile, oil staged a rally all the above $71 a barrel - a 2009 high - jumping more than 100% in three months. Funds hedge themselves against possible inflation with oil. Investors and traders take it as a sign that the worst of the recession is likely over.
Also, late on Tuesday, the Supreme Court approved for the sale of the bulk of Chrysler LLC's assets to Fiat Group SpA, by rejecting an appeal by pension and construction funds, consumer groups and others to block the transaction. This brings Chrysler a step closer to emerging from bankruptcy protection. The deal will likely close early Wednesday, according to reports.
Economic releases today include:
- April trade balance at 8:30 AM
- At 10:30 AM weekly crude inventories will be released. Analysts expect a rise of 800,000 barrels.
- At 2:00 PM, May's Treasury budget and the Fed's Beige Book are due out. The Beige Book will give investors a more comprehensive picture of how the Federal Reserve views the economy.
Google's plan for netbook PCs moves higher into the clouds
Closing Bell: Stock bulls and dollar death (DDRX,GMCR, PEET, SBUX, EBAY, CI, TECD)
So long peak oil, here comes peak uranium
