Wednesday, March 6, 2013

U.S. Stock Futures Rally; Dow Set To Open Above Record High

With the Dow Jones Industrial Average closing in on an all-time high, U.S. stock futures pointed to an opening above the record closing level, following strong retail sales data out of Europe and a sharp rebound in Asia.
About 50 minutes ahead of the open, Dow futures rallied 48 points, or 0.3%, to 14164. The blue-chip barometer rose 38 points, or 0.3%, to close at the second-highest level ever on Monday, and within just 37 points of the all-time closing high of 14164.53 reached on Oct. 9, 2007.
Standard & Poor's 500-stock index futures added six points, or 0.4%, to 1532 and Nasdaq 100 futures rose 14 points, or 0.5%, to 2774.
Changes in stock futures don't always accurately predict stock moves after the opening bell.
On the economic calendar, the Institute for Supply Management's nonmanufacturing purchasing managers index for February, due at 10 a.m. EST, is expected to slip slightly to 55.0 from January's 55.2.
European markets were broadly higher, with the Stoxx Europe 600 up 1.4% and on an early track to close at 4 1/2-year high, following strong euro-zone retail sales.
Eurostat, the European Union's official statistics agency, said retail sales rose 1.2% in January, above expectations of 0.3% and the fastest pace of growth seen since April 2011. Separately, Markit's composite purchasing managers index for the region was revised to 47.9 in February, up from an initial estimate of 47.3. Readings below 50 indicate contraction.
Asian markets were also broadly higher, bouncing after the previous session's sharp declines. China's Shanghai Composite, which tumbled 3.7% on Monday after the introduction of new measures to cool the country's property market, climbed 2.3%. Outgoing Premier Wen Jiabao helped reassure investors as he kicked off the annual session of the National People's Congress by announcing an economic growth target of 7.5% for 2013, as expected.
Elsewhere, Australia's S&P ASX 200 gained 1.3% after stronger-than-expected retail-sales data and Japan's Nikkei Stock Average added 0.3% to close at a fresh 4 1/2-year high.
Front-month April crude-oil futures added 0.5% to $90.56 a barrel, while March gold futures advanced 0.6% to $1,582.20 an ounce. The dollar eased slightly against both the euro and the yen.
Shares of J.C. Penney Co.(JCP) fell 2.9% in premarket trading after commercial-real-estate owner Vornado Realty Trust VNO) looked to sell 10 million shares, or more than 40% of its holdings in the department-store chain. Vornado's stock was still untraded ahead of the open.
Qualcomm Inc. (QCOM) rose 2.1% after the semiconductor maker said it was increasing its quarterly dividend by 40% to 35 cents a share and announced a new $5 billion stock repurchase program.
Apple Inc. (AAPL) edged up 0.3% and Google Inc. (GOOG)gained 0.8%. The technology heavyweights went in separate directions on Monday, with Apple falling 2.4% to close at the lowest level seen since Jan. 13, 2012, while Google climbed 1.9% to an all-time high.
Impax Laboratories Inc. (IPXL) slid 20% after the company said the U.S. Food and Drug Administration issued 12 observations following a reinspection of a manufacturing facility, three of which are repeat observations from inspections that occurred prior to the issuance of a warning letter.
AcelRx Pharmaceuticals Inc. (ACRX)rose 10% after the company said a late-stage study of its patient-controlled pain treatment met its primary endpoint.
Santarus Inc. (SNTS) surged 8.6% after the biopharmaceutical company reported fourth-quarter earnings and revenue that topped analyst expectations and affirmed its 2013 outlook.
Williams Partners L.P. (WPZ) shed 3.3% after the master limited partnership focused on natural-gas transportation said it plans to offer 10 million common units for sale to the public.
Write to Tomi Kilgore at tomi.kilgore@dowjones.com.
Copyright © 2013 Dow Jones Newswires

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