US Stock Futures Point to Third Day of Gains
New York (Dec 23) US stock futures climbed on Wednesday, pointing to a third straight day of gains for Wall Street.
S&P 500 futures were up 0.41%, Dow Jones Industrial Average futures rose 0.54%, and Nasdaq futures gained 0.41%.
Wednesday is the last full day of trading before the Christmas break and volume is expected to be lower than normal. Wall Street will close at 1 p.m. EST on Thursday for Christmas Eve and be closed on Friday for Christmas.
Consumer spending in the U.S. rose in November as American shoppers began their holiday season over the Black Friday weekend. Spending increased 0.3%, according to the Commerce Department. The release had inadvertently been released more than 12 hours ahead of schedule.
Apple (AAPL) shares were on watch after FBR & Co. analysts cut their price target and expectations for iPhone shipments. The firm said recent data showed weaker demand. Analyst Daniel Ives retained his "outperform" rating, but his stock price target was reduced to $150 from $175.
Nike (NKE - Get Report) climbed 3% in premarket trading after reporting better-than-expected profit in its second quarter and generating a 4% sales increase from a year earlier. The athletic apparel company said it expects 15% growth in global futures orders.
Micron Technology (MU - Get Report) fell 4% after reporting weaker revenue in its recent quarter. The semiconductor company suffered from lower prices on softer demand for chips. Micron earned 24 cents a share, a penny above estimates.
Drugmaker Shire (SHPG - Get Report) made a new acquisition offer for Baxalta International (BXLT) roughly in line with Baxalta's valuation expectations. Baxalta had rejected an all-stock offer from Shire in August, arguing it undervalued the company. A deal is likely in coming weeks, according to Reuters.
Chipotle (CMG - Get Report) shares remained under pressure after the Centers for Disease Control and Prevention said a new E.coli outbreak at the burrito chain appeared to have a "different, rare DNA fingerprint" of the disease. Shares dipped below $500 on Tuesday for the first time since mid-2014.
The economic calendar is busy on Wednesday as releases are packed in to accommodate the shorter week. Durable goods orders in November will be released before the bell with economists expecting a 0.5% contraction after growth of 3% a month earlier.
New home sales in November and consumer sentiment will be released mid-morning Wednesday.
Source: TheStreet
