Stock futures rise ahead of GDP data, Fed remarks

[March 19, 2010]  NEW YORK (AP) -- Wall Street is set to break a two-day losing streak Wednesday as investors anticipate an encouraging reading on first-quarter GDP.

Stock futures rose in premarket trading on hopes that the economy's slide is moderating. Economists predict the Commerce Department will report Wednesday morning that gross domestic product shrank at an annual rate of 5 percent in the first quarter. That's a slower pace than in the previous quarter, when GDP contracted at a 6.3 percent annual rate.

The Federal Reserve also concludes its interest-rate meeting Wednesday. The market is eager for its assessment of the economy, and is curious if it will accelerate its buying of Treasurys. After lowering its target rate to a range of zero to 0.25 percent, the Fed started buying government debt in March to try to lower rates in the market even further.

Before the market opening, Dow Jones industrial average futures rose 70, or 0.9 percent, to 8,037. Standard & Poor's 500 index futures gained 8.20, or 1 percent, to 860.00. Nasdaq 100 index futures advanced 12.25, or 0.9 percent, to 1,372.75.

In earnings news, Time Warner Cable Inc. said sales rose in the first quarter, but its earnings fell 32 percent on restructuring and other costs related to its spin-off from former parent Time Warner.

The Dow remains 22 percent above its early March lows, but stocks have been vacillating over the past several days.

Swine flu worries triggered a selloff in the stock market Monday. Then on Tuesday, news that Citigroup Inc. and Bank of America Corp. might need more capital left the major indexes with losses. Tuesday's pullback was modest, though, thanks to data showing a sharp jump in consumer confidence.

Furthermore, anxiety about swine flu is abating in the global markets. Countries around the world are testing potential cases and girding for a widespread outbreak. But so far, it seems the disease might be becoming less virulent the further away it is from Mexico, its apparent source.

In overseas trading, Japan's Nikkei stock average fell 2.7 percent. By midday in Europe, Britain's FTSE 100 rose 1.2 percent, Germany's DAX index rose 1.1 percent and France's CAC-40 rose 1.5 percent.

U.S. government bond prices were mixed.

The dollar was mostly lower against other major currencies. Gold prices rose.

Light, sweet crude rose 76 cents to $50.68 a barrel in electronic trading on the New York Mercantile Exchange.

[Associated Press; By MADLEN READ]

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