Before the bell: Stock futures higher ahead of consumer sentiment, trade gap data

Posted Nov 13th 2009 7:45AM by Melly Alazraki
Filed under: Before the Bell, International Markets, Market Matters, Walt Disney (DIS), Penney (J.C.) (JCP), Abercrombie and Fitch (ANF), Economic Data, Oil

U.S. stock futures were higher Friday morning indicating Wall Street, after taking a two-day rest from its drive upward, was ready to rebound. While investors await several economic releases, including trade balance and consumer sentiment, Walt-Disney's better-than-expected results has helped sentiment.

On Thursday, U.S. stocks declined, after crude inventories were reported higher than expected, dragging down oil prices, oil companies and the markets. Investors also questioned the sustainability of the recent rally, driving the Dow industrials down nearly 100 points.

Several economic indicators are due out this morning:

At 8:30 a.m. Eastern, October import and export prices will be released.
At the same time, September trade balance will be reported. The trade deficit in the U.S. probably widened in September to $31.8 billion from $30.7 billion in August, reflecting rising demand for imported oil and automobiles as the economy started to rebound from the recession. In the coming months, economists expect both imports and exports to grow, the first due to improved consumer and business spending, the latter thanks to the lower dollar.
Finally, near 10:00 a.m., the November preliminary number for the University of Michigan's consumer sentiment is due out. Economists expect sentiment to rise, according to Briefing.com.

In addition, New York Fed President William Dudley and Chicago Fed President Charles Evans are giving speeches today.

Overseas, Asian markets closed mixed amid investor uncertainty about the global outlook. European stock markets were mixed, with investors digesting data showing the eurozone economy has emerged from the recession, growing 0.4% in the third quarter from the previous three-month period. But this was below forecasts for 0.6% growth, with France and Germany's recovery slower than most analysts expected.

Walt-Disney (DIS) reported late Thursday its fourth-quarter earnings grew 18%, beating estimates and showing signs of improvement in the company. Investors also await earnings from JC Penney (JCP) and Abercrombie & Fitch (ANF).

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