Before the Bell: Futures Higher Ahead of Economic Data

Posted Dec 22nd 2009 8:20AM by Melly Alazraki
Filed under: Before the Bell, International Markets, Market Matters, Boeing Co (BA), Economic Data

U.S. stock futures rose Tuesday morning, indicating Wall Street is ready to extend Monday's gains when markets open. Unlike Monday, where mergers and deals were the center of attention, this morning investors will focus on economic data, including GDP and housing.

Stocks rallied on Monday, pushing the Dow back into positive territory for the month, even as it rose 0.8%, less than the Nasdaq composite and the S&P 500, both of which gained 1.1%. From Alcoa (AA) being upgraded, to deal-making, to a health care bill viewed as favorable for insurers, investors' mood was festive, albeit at lower volumes as expected for this time of year.

This morning, however, it is the economy that will be in focus as several indicators are due out:

At 8:30 a.m., the Commerce Department releases its final revision of third-quarter gross domestic product. Economists expect economic activity to have risen at an annual rate of 2.7% in the three months ended in September, below the 3.5% growth rate the government first reported in October. Still, a considerable growth compared to the previous quarters' contractions.
At 10:00 a.m., the National Association of Realtors will release a report on existing home sales for November. Economists expect the annual sales rate to rise to 6.25 million from 6.1 million in October.

Overseas, Japan led Asia's advance as the yen continued to fall against the dollar, boosting exports. The Nikkei jumped 1.9% to close at a three-month high. European markets also moved higher Tuesday ahead of the of U.S. economic figures. Meanwhile, the British economy did not contract as much as previously thought during the third quarter. However, Greece had its credit rating cut one step to A2 by Moody's Investors Service.

Among stocks in the news are State Street Corp. (STT) and Boeing Co. (BA), both of which announced deals, as well as Take-Two Interactive Software (TTWO), which lowered its guidance Monday.

Tags: ba, stt, ttwo