* U.S. trade deficit smallest in four years
* German unemployment unexpectedly falls
* Futures up: Dow 61 pts, S&P 6 pts, Nasdaq 16 pts
By Rodrigo Campos
NEW YORK, Jan 7 A declining U.S. trade deficit
and upbeat German data set the S&P 500 for a rebound on Tuesday
after three days of losses.
The latest evidence of strengthening economic fundamentals
in the United States came in the form of the smallest trade
deficit in four years in November, as exports hit a record high
and weak oil prices restrained import growth.
German unemployment unexpectedly fell in December on a
seasonally-adjusted basis, bolstering hopes that domestic
consumption could lift growth in Europe's biggest economy.
"Europe's data has not been bad. It gives optimism," said
Kim Forrest, senior equity research analyst at Fort Pitt Capital
Group in Pittsburgh.
She said investors awaited Friday's jobs report and the
start of the corporate earnings season for trading incentives.
S&P 500 futures rose 6 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 61
points and Nasdaq 100 futures added 16 points.
Economic activity may be hurt by a polar vortex - strong
upper-level winds in the Northern hemisphere that normally hover
over the polar region but have been pushed south - that was
enveloping the U.S. East Coast. The frigid air comes less than a
week after the year's first snowstorm blanketed the region,
including financial hubs New York and Boston.
Intel CEO Brian Krzanich showed off wearable
computing devices on Monday, including ear buds that monitor the
wearer's heart rate and a smart headset, as the world's largest
chipmaker tries to get back on track after missing out on
smartphones. Intel shares ticked up 0.3 percent in premarket
Morgan Stanley cut its rating on Netflix shares to
"underweight." Netflix fell 2.8 percent in premarket trading.
Shares of Neurocrine Biosciences soared 58 percent
in premarket trading a day after it said its movement disorder
drug showed a reduction in symptoms compared with a placebo in a
Shares of therapeutic delivery systems provider Stereotaxis
jumped 33 percent before the bell following completion
of a clinical trial.
Janet Yellen made history on Monday as the U.S. Senate
confirmed her as the first woman to lead the U.S. Federal
Reserve in the central bank's 100-year history.
Eric Rosengren, president of the Federal Reserve Bank of
Boston, said he expects gross domestic product growth of about 3
percent this year and added that low inflation is a concern.