futures climb, point to second week of gains
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[August 15, 2014]
By Ryan Vlastelica
NEW YORK (Reuters) - U.S.
stock index futures were higher on Friday, with major
indexes on track for a second week of gains, as traders
bet there would be no immediate escalation in the tense
situations in Ukraine or Iraq.
Recent trading has taken its cue from news overseas, with investors
concerned about the potential impact of any exacerbation of the
conflict between Russia and Ukraine, or in violence in Iraq.
Ukrainian border guards crossed the frontier to inspect a huge
Russian aid convoy, which some had speculated could be a cover for a
military invasion. The inspection comes a day after Russian
President Vladimir Putin struck a softer tone in comments regarding
In Iraq, Nuri al-Maliki stepped down as prime minister, paving the
way for a new coalition that world and regional powers hope will be
able to quash a Sunni Islamist insurgency that threatens Baghdad.
Investors awaited August data on both manufacturing and consumer
sentiment. The New York Fed's read on manufacturing, due at 8:30
a.m. EDT, is seen falling to 20 from 25.6, while the Thomson
Reuters/University of Michigan Surveys of Consumers - due at 9:55
a.m. - is seen rising to 82.5 from 81.8 previously.
S&P 500 e-mini futures rose 5.25 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 e-mini futures added 50 points and Nasdaq 100
e-mini futures gained 14.5 points.
For the week, the Dow is up 1 percent, the S&P is up 1.2 percent and
the Nasdaq is up 1.9 percent.
The benchmark S&P index is 1.7 percent off a closing record hit late
July. In a sign of the market's long-term strength, the index has
marked more than 1,000 days since its last correction, which Wall
Street defines as a drop of 10 percent from the most recent high.
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Applied Materials Inc late Thursday reported third-quarter earnings
that beat expectations, boosted by demand for DRAM chips. It also
forecast adjusted current-quarter profits that were largely above
Monster Beverage Corp jumped 21 percent to $87 in premarket trading
after Coca-Cola Co said it was buying a 16.7 percent stake in the
company for $2.15 billion.
JD.com Inc fell 6.7 percent to $28 in premarket trading after the
company reported a wider second-quarter loss than a year earlier,
even as revenue jumped 64 percent.
Warren Buffett's Berkshire Hathaway Inc disclosed a new $366 million
stake in Charter Communications Inc, part of a flurry of changes in
its stock investments during the second quarter. It also trimmed its
stake in DirecTV and is no longer reporting any stake in Starz.
(Editing by Bernadette Baum)
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