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.
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.
Shares of United Parcel Service Inc
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 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 rose 52 points, and Nasdaq 100 futures were up 15.50 points.
Computer Sciences Corp
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. 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
Toll Brothers Inc
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)