Aug. 23 (Bloomberg) -- U.S. stock futures rose, indicating the Standard & Poor's 500 Index will rebound from the lowest valuation since 2009, on speculation the Federal Reserve will act to spur the economic recovery.
Alcoa Inc. and Exxon Mobil Corp. added at least 1.2 percent as commodity prices rallied for a second day. Bank of America Corp. and Goldman Sachs Group Inc. advanced more than 1.3 percent, following a tumble in financial stocks yesterday. Nvidia Corp., a maker of graphics chips, climbed 3.4 percent after Wells Fargo & Co. raised its recommendation.
S&P 500 futures expiring in September advanced 1 percent to 1,134 at 8:33 a.m. in New York, after rising as much as 2 percent earlier. Dow Jones Industrial Average futures rose 92 points, or 0.8 percent, to 10,939.
Federal Reserve Chairman Ben S. Bernanke "probably feels some pressure from the stock market to respond in some fashion," Howard F. Ward, portfolio manager at Mario Gabelli's Gamco Investors Inc., said on Bloomberg Television's "InsideTrack" with Deirdre Bolton and Erik Schatzker. "He should lay out a game plan of what he can do should the economic outlook warrant that."
Central bankers from around the world converge this week on Jackson Hole, Wyoming, for a conference that last year resulted in Bernanke signaling a second round of asset purchases that buoyed asset markets. The S&P 500 rose 28 percent between Aug. 26, 2010, and Feb. 18 after Bernanke foreshadowed a $600 billion bond-purchase program a year ago in Jackson Hole.
$8 Trillion
A four-week global equity rout has wiped about $8 trillion from companies' market value as Europe's sovereign debt-crisis and worsening economic reports in the U.S. raised concern the global economic recovery is faltering. The S&P 500 fell 16 percent from July 22 through the end of last week and its members trade at an average 11.3 times estimated earnings, near the lowest level since March 2009.
Purchases of new U.S. homes probably fell for a third straight month in July, pointing to lingering housing market weakness two years into the economic recovery, economists said before a report today. Sales fell 0.6 percent to a 310,000 annual pace, the slowest in four months, from a 312,000 rate in June, according to the median estimate of 75 economists in a Bloomberg News survey.
Energy and raw-material stocks rallied. Alcoa, the largest U.S. aluminum producer, added 1.7 percent to $11.42. Exxon Mobil gained 1.2 percent to $71.
Financial companies also advanced, with Bank of America adding 2.2 percent to $6.56, and Goldman Sachs rising 1.4 percent to $108. The industry lost 1.3 percent yesterday, the most among 10 groups in the S&P 500.
Nvidia added 3.4 percent to $12.35 after being raised to "outperform" from "market perform" at Wells Fargo.
Source:www.sfgate.com
Alcoa Inc. and Exxon Mobil Corp. added at least 1.2 percent as commodity prices rallied for a second day. Bank of America Corp. and Goldman Sachs Group Inc. advanced more than 1.3 percent, following a tumble in financial stocks yesterday. Nvidia Corp., a maker of graphics chips, climbed 3.4 percent after Wells Fargo & Co. raised its recommendation.
S&P 500 futures expiring in September advanced 1 percent to 1,134 at 8:33 a.m. in New York, after rising as much as 2 percent earlier. Dow Jones Industrial Average futures rose 92 points, or 0.8 percent, to 10,939.
Federal Reserve Chairman Ben S. Bernanke "probably feels some pressure from the stock market to respond in some fashion," Howard F. Ward, portfolio manager at Mario Gabelli's Gamco Investors Inc., said on Bloomberg Television's "InsideTrack" with Deirdre Bolton and Erik Schatzker. "He should lay out a game plan of what he can do should the economic outlook warrant that."
Central bankers from around the world converge this week on Jackson Hole, Wyoming, for a conference that last year resulted in Bernanke signaling a second round of asset purchases that buoyed asset markets. The S&P 500 rose 28 percent between Aug. 26, 2010, and Feb. 18 after Bernanke foreshadowed a $600 billion bond-purchase program a year ago in Jackson Hole.
$8 Trillion
A four-week global equity rout has wiped about $8 trillion from companies' market value as Europe's sovereign debt-crisis and worsening economic reports in the U.S. raised concern the global economic recovery is faltering. The S&P 500 fell 16 percent from July 22 through the end of last week and its members trade at an average 11.3 times estimated earnings, near the lowest level since March 2009.
Purchases of new U.S. homes probably fell for a third straight month in July, pointing to lingering housing market weakness two years into the economic recovery, economists said before a report today. Sales fell 0.6 percent to a 310,000 annual pace, the slowest in four months, from a 312,000 rate in June, according to the median estimate of 75 economists in a Bloomberg News survey.
Energy and raw-material stocks rallied. Alcoa, the largest U.S. aluminum producer, added 1.7 percent to $11.42. Exxon Mobil gained 1.2 percent to $71.
Financial companies also advanced, with Bank of America adding 2.2 percent to $6.56, and Goldman Sachs rising 1.4 percent to $108. The industry lost 1.3 percent yesterday, the most among 10 groups in the S&P 500.
Nvidia added 3.4 percent to $12.35 after being raised to "outperform" from "market perform" at Wells Fargo.
Source:www.sfgate.com
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