US STOCKS-Wall St set to open higher on China factory data
* Chinese factory output growth surges to 19-month high
* US bond market, government offices closed for holiday
* Futures up: S&P 7 pts, Dow 52 pts, Nasdaq 16 pts
* For up-to-the-minute market news, click [STXNEWS/US] (Updates prices, adds details)
By Angela Moon
NEW YORK, Nov 11 (Reuters) - Wall Street was set to open higher on Wednesday as better-than-expected economic data from China and comments from Federal Reserve officials on continued low interest rates buoyed investors' appetite for riskier investments.
Chinese factory output growth surged to a 19-month high in October, signaling that the world's third-largest economy has firmly put the worst of the global economic crisis behind it. For details, see [ID:nPEK212006]
Top Fed officials said in a string of speeches on Tuesday that high unemployment and reluctant consumers would likely make a U.S. economic recovery weak and erratic, underscoring belief that economic stimulus will remain intact. [ID:nN10315173]
Shares of United Parcel Service Inc (UPS.N), the world's largest package delivery service, gained 1.7 percent to $57.84 in premarket trading after its chief gave a growth forecast in its volumes next year as the global economy gradually recovers. [ID:nSIN517117]
"The news out of China has raised the upbeat mood on global economic recovery, and comments from the Fed members are making continuous opportunities for investors to take risks," said Peter Cardillo, chief market economist at Avalon Partners in New York.
S&P 500 futures SPc1 gained 7.2 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 DJc1 rose 52 points, and Nasdaq 100 futures NDc1 were up 15.50 points.
Macy's Inc (M.N) shares tumbled 3.5 percent to $18.75 in premarket trading after the company reported third-quarter results that were stronger-than-expected but gave a gloomy outlook on same store sales for the fourth quarter. [ID:nWNAB4388]
Computer Sciences Corp (CSC.N) and Applied Materials Inc (AMAT.O) are also due to report results.
U.S. Treasury Secretary Timothy Geithner said on Wednesday he "deeply" believes the United States needs to maintain a strong dollar and said the United States was determined to reduce its budget deficit. [ID:nT335432] But the dollar extended its recent decline to a 15-month low against major currencies in early trading.
Unhappy over constraints imposed by U.S. government overseers, American International Group Inc's (AIG.N) chief executive, Robert Benmosche, told the company's board last week that he was considering stepping down, the Wall Street Journal said, citing people familiar with the matter. AIG shares fell 2.4 percent to $36.68 in premarket trading.
Toll Brothers Inc (TOL.N) gained 6.7 percent to $19.63 before the bell following the homebuilder's release of preliminary results on Tuesday.
Wednesday's session was expected to be quiet because of the Veterans Day holiday. The U.S. bond market and government offices will remain closed, while other markets will trade normally. (Editing by Padraic Cassidy)
