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US STOCKS-Futures climb after China data; banks eyed
* China GDP within expectations
* JPMorgan posts $4.4 bln trading loss; to restate Q1
* Futures up: Dow 44 pts, S&P 3.8 pts, Nasdaq 8.75 pts
By Chuck Mikolajczak
NEW YORK, July 13 (Reuters) - U.S. stock index futures rose o n F riday, indicating the S&P 500 may snap its longest losing streak since May, after data in China allayed fears a slowdown in the economic giant could further hinder growth worldwide.
Data showed growth in China slowed for a sixth straight quarter to 7.6 percent, in line with expectations, but low enough to keep open the possibility that more action may be taken by policymakers.
"Everybody expected a slowdown, these numbers aren't too far out of line with what people on the street are seeing, that's why it's kind of a sign of relief - it matches up with what you can verify," said Kim Forrest, senior equity research analyst, Fort Pitt Capital Group in Pittsburgh.
Futures trimmed some earlier gains after JPMorgan Chase & Co reported $4.4 billion of credit trading losses in its London offices, but posted overall profit that was barely dented by the trades. The biggest U.S. bank said it would restate its previously filed interim financial statement for the first quarter. Shares advanced 1.6 percent to $34.62 in volatile premarket trading.
"It (JP Morgan) is going to drive the market today - banks have to build this image of solidness and the 'London whale' thing and now this (restatement of first quarter results) is really chipping away at the foundation of the banks," said Forrest.
Also in the banking sector, Wells Fargo & Co dropped 1.1 percent to $32.50 in premarket trading after the biggest U.S. mortgage lender reported second-quarter earnings.
S&P 500 futures rose 3.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 44 points, and Nasdaq 100 futures added 8.75 points.
Economic data expected on Friday include the June Producer Price Index at 8:30 a.m. EDT (1230 GMT) and the Thomson Reuters/University of Michigan Surveys of Consumers preliminary July consumer sentiment index at 9:55 a.m. EDT (1355 GMT).
Economists in a Reuters survey forecast a 0.5 percent decline in PPI and a rise of 0.2 percent excluding volatile food and energy items. Consumer sentiment is expected to show a reading of 73.4 against the 73.2 in the final June report.
European concerns were kept at bay as Italy passed a tough test - its three-year borrowing costs fell well below 5 percent at an auction hours after Moody's cut the country's rating to two notches above junk status.
Mining companies led a bounce in European equities, with the FTSEurofirst 300 up 0.7 percent.
Asian shares jumped after the release of China's second-quarter gross domestic product data.
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