* NY factory index falls in Nov to weakest since May-NY Fed
* Twitter options begin trading
* Exxon Mobile shares up after Buffett discloses stake
* Futures up: Dow 32 pts, S&P 3.5 pts, Nasdaq 4.5 pts
By Angela Moon
NEW YORK, Nov 15 The Dow and the S&P 500 were
set for fresh record highs on Friday, buoyed by reassuring
remarks by Federal Reserve chair nominee Janet Yellen that the
central bank's accommodative policies would continue.
Wall Street rallied Thursday, with the S&P 500 ending just
10 points away from 1,800, its next level of potential
resistance, in the wake of Yellen's comments. The Fed's massive
stimulus measures have helped prop up the economy and equity
markets for much of the year.
"The post-Yellen rally seems to be continuing but with the
S&P 500 within the range of 1,800, the market will be a bit
bumpy as we approach that," said Peter Cardillo, chief market
economist at Rockwell Global Capital in New York.
Data showed New York state's manufacturing sector
unexpectedly shrank this month, but business optimism remained
resilient. The market barely reacted to the report.
In premarket trading, Exxon Mobil Corp rose 1.3
percent, a day after Warren Buffett's Berkshire Hathaway Inc
disclosed a new $3.45 billion stake in the
world's largest publicly traded oil company.
S&P 500 futures rose 3.5 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 rose 32
points and Nasdaq 100 futures added 4.5 points.
Bank shares could be in the spotlight after Moody's
Investors Service cut the long-term debt ratings of Morgan
Stanley, Goldman Sachs Group Inc, JPMorgan Chase &
Co and Bank of New York Mellon Corp by one notch
late Thursday, concluding that the government wouldn't bail out
the institutions if they fail.
Top U.S. hedge fund managers zoned in on the consumer sector
in the third quarter, with investment plays ranging from luxury
auction house Sotheby's to struggling department store
chain J.C. Penney Co. J.C. Penney shares
were up 1.7 percent and Sotheby's shares rose 1.5 percent in
Following Twitter 's trading debut on the New York
Stock Exchange on Nov. 7, options market makers begin pricing
and trading contracts Friday to buy or sell Twitter shares at
various prices in the future.
Jos. A. Bank Clothiers Inc terminated its offer to
buy Men's Wearhouse Inc, sending Men's Wearhouse shares
down 1.3 percent in premarket trading, although Jos. A. Bank did
not rule out another bid for its larger rival in future.
European shares rose back towards five-year highs on Friday,
buoyed by prospects for a further dose of accommodative central
bank policies that were tipped to keep the equity rally on
The Dow and the S&P 500 index ended at new highs on Thursday
after Janet Yellen said the Fed's accommodative policies would
continue as long as the economy remains fragile.