US STOCKS-Market set for higher start to 2008
(Updates prices)
By Caroline Valetkevitch
NEW YORK, Jan 2 (Reuters) - U.S. stock index futures pointed to a higher start to the year on Wednesday after brokerage upgrades on Amazon.com Inc (AMZN.O) and other Internet companies, while oil prices above $97 a barrel could boost the energy sector.
As traders returned to work after the New Year's Day holiday on Tuesday, shares of Amazon.com, one of last year's top-performing stocks with gains of 134 percent, rose 2.4 percent to $94.90 in trading before the open. Citigroup raised its rating on the Internet retailer. For details, see [ID:nWNA2340].
In other ratings action, Yahoo Inc. (YHOO.O) was raised by Thinkequity, theflyonthewall.com said.
Crude oil futures rose $1.36 to $97.34 a barrel amid renewed violence in oil exporter Nigeria. Energy was the best performing sector in the S&P 500 last year, up 32 percent, followed by materials, up 20 percent.
"There's a tendency for the market to begin on a positive note absent any news out there, and there doesn't seem to be anything important that's negative," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey. "The large oil (companies) could probably benefit from" oil prices rising, he said.
S&P 500 futures SPc1 were up 2 points, above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.
Dow Jones industrial average futures DJc1 were up 26 points. Nasdaq 100 NDc1 futures were up 7.75 points.
Gains could be limited by brokerage downgrades in a number of technology companies, including National Semiconductor Corp (NSM.N), according to theflyonthewall.com.
Chip maker Intel Corp (INTC.O) was down 1.3 percent at $26.30 before the opening bell after Banc of America cut its rating on the stock to "neutral" from "buy."
On the economic agenda, the Commerce Department is scheduled to release November construction spending data at 10 a.m. (1500 GMT), while the Institute for Supply Management is expected to release its December manufacturing index at the same time.
On Monday, stocks fell on the last day of 2007, but the market managed to make a modest advance for the year after gains in energy and technology offset the dramatic sell-off in financial services from the mortgage market meltdown. (Editing by Kenneth Barry)
