US Stock Futures Signal Higher Open Ahead Of Empire State Manufacturing Survey

on December 17 2012 4:02 AM
Traders work on the floor of the New York Stock Exchange on May 1, 2012.
Traders work on the floor of the New York Stock Exchange on May 1, 2012. REUTERS

The U.S. stock index futures pointed to a higher open Monday ahead of the Federal Reserve Bank of New York's Empire State Manufacturing Survey.

The futures on the Dow Jones Industrial Average were up 0.19 percent, the futures on the Standard & Poor's 500 Index were up 0.35 percent and those on the Nasdaq 100 Index were up 0.28 percent. 

The Empire State Manufacturing Survey for December is scheduled for release at 8:30 a.m. EDT Monday. Economists expect the index, which rates the relative level of the general business conditions in New York state, will show a reading of -1, compared to -5.2 in November. A less than zero reading signals worsening conditions. In addition to New York, the index covers northern New Jersey and southern Connecticut.

On Friday, the U.S. stocks fell as investor sentiment turned negative following uncertainty over the progress made by the Congress leaders in reaching an agreement to avert the looming fiscal cliff and prevent the scheduled rise in tax rates and spending cuts from plunging the economy into recession early next year.

Meanwhile, according to the data released Friday by the Department of Labor, Consumer Price Index, which measures the change in the price of goods and services from consumers' perspective, fell 0.3 percent in November, down from 0.1 percent rise in October. Also according to the data released Friday by the Federal Reserve, industrial production, which measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities, rose 1.1 percent in November after a 0.4 percent decrease in October.

The Dow Jones Industrial Average fell 0.27 percent, the S&P 500 Index was down 0.41 percent and the Nasdaq Composite Index declined 0.70 percent.

European markets were mixed Monday amid revival of concerns of the debt burden affecting the economies of the euro zone. London's FTSE 100 was down 8.73 points, Germany's DAX 30 index rose 23.50 points and France's CAC 40 declined 11.28 points.

Asian stocks were mixed Monday tracking global economic concerns. Markets players are encouraged to know that the Liberal Democratic Party (LDP) won a land-slide victory, regaining its ruling party status, in the general election in Japan over the weekend. Investors are hoping for the LDP led by Shinzo Abe to announce stimulus measures much needed to revive the economic growth momentum of Japan.

China’s Shanghai Composite gained 9.72 points, Hong Kong’s Hang Seng Index fell 92.37 points, Japan’s Nikkei rose 91.32 points and India’s Sensex was down 55.98 points.

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