US stocks poised for a high open on Tuesday after a solid report on economic growth
On Tuesday U.S. stocks were poised for a higher open, putting the Dow and S&P 500 on track to extend a four-day rally after an unexpectedly strong GDP report.
In general, trading volume is expected to be light this week due to the Christmas holiday.
The final estimate of the U.S. gross domestic product for the third quarter was revised up to a 5 percent annual pace, its quickest in 11 years, from the 3.9 percent reported last month on a stronger consumer and business spending, the government said.
The report easily topped expectations calling for a 4.3 percent pace.
"That is a solid number, that is really what you want to see, you want to see it in demand," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.
"That is a huge plus, a five handle on GDP is astounding to me, but I'm not going to turn it away - Merry Christmas."
However,
durable goods orders unexpectedly fell 0.7 percent in November, well
short of expectations calling for an increase of 2.9 percent.
Non-defense capital goods orders excluding aircraft, a closely watched
proxy for business spending plans, was unchanged after a downwardly
revised 1.9 percent drop in October.
Main Wall Street indeces have risen for four straight sessions, making the S&P rise 5.4 percent over that period, its best 4-day run since July 2010. The rally comes on the heels of a selloff, sparked by a slump in oil prices that saw the index drop nearly 5 percent from its prior record high set on Dec. 5, as Reuters reports.
S&P 500 e-mini futures were up 9.25 points and fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicated a higher open. Dow Jones industrial average e-mini futures rose 75 points and Nasdaq 100 e-mini futures added 14.5 points.
This week trading volume is expected to be light due to the Christmas holiday, which could increase volatility. U.S. equity markets will open for an abbreviated session Wednesday and be closed on Thursday.
Walgreen Co advanced 2.3 percent to $76 in premarket after the drugstore chain operator reported a better-than-expected quarterly profit.
China Finance Online Co Ltd jumped 21.2 percent to $6.45 before the opening bell after the web-based financial services company posted quarterly results.
