Thursday, August 27, 2009

U.S. stock futures inch higher; GDP may be revised lower

LONDON (MarketWatch) -- US stock inched up today in a market that's struggling to make a new push higher but isn't yielding ground either.

S&P 500 futures rose 1.5 points to 1,028.30 and Nasdaq 100 futures were up three-quarters of a point to 1,637.20. Futures on the Dow Jones Industrial Average rose 8 points.

The blue chip Dow Jones Industrial Average rose for the seventh session in a row on Wednesday -- though only by 4 points. The S&P 500 and the Nasdaq Composite each rose fractionally, advancing for the sixth time in seven sessions, helped by upbeat data from the housing market.

Citigroup's currency strategists said the market is languishing at the moment.

"Despite robust headline data releases, markets moved broadly sideways. This is a reflection of the 'hard' data failing to keep up with expectations-based measures and a sign of market fatigue with the risk rally," they said in a note to clients.

Weekly jobless claims and a second report on second-quarter GDP will be released at 8:30 a.m. Eastern time.

Economists polled by MarketWatch expect claims to slip to 565,000 and the second-quarter GDP to be revised lower to show a 1.5% contraction from a 1% contraction that the government previously estimated.

The Citi strategists also expect a 1.5% contraction.

"Higher-frequency data since the release suggest a lower value for investment in residential and non-residential structures while the contribution from inventory changes is also likely to fall substantially," they said.

Overseas, the Shanghai Composite slipped 0.7% as a Chinese government council expressed concerns about overcapacity in some industries, leading some to conclude that there will be restrictions in areas like steel and cement production.

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