US stocks to open little changed Wednesday

US stocks to open little changed Wednesday

25 March 2015, 14:43
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On Wednesday Wall Street was set to open little changed following weak industrial orders data, with deals showing investors still see value in the market despite indexes trading near all-time highs.

Futures hardly moved after durable goods orders unexpectedly dropped in February, according to data which pushed the dollar index lower.

A fragile dollar has been backing stocks of late as it eases fears that its steep rally will hurt corporate earnings.

The greenback rally from last year has been based on expectations that a stronger U.S. economy is pushing the Federal Reserve closer to raising rates.

“Bad economic news is taking the wind out of the sails with respect to a rate hike in June,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

"The market loves a zero interest rate policy."

S&P 500 e-mini futures were higher a point and fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicated a flat open. Dow Jones industrial average e-mini futures 1YMc1 fell 6 points and Nasdaq 100 e-mini futures NQc1 added 6 points.

Kraft Foods (KRFT.O) jumped 34 percent in premarket trading after the news it would merge with ketchup maker H.J. Heinz Co, owned by 3G Capital and Berkshire Hathaway (BRKb.N). Kraft Heinz Co will trade publicly and will be the third-largest food company in North America.

Kofax Ltd (KFX.O) rallied 46 percent premarket after Lexmark International (LXK.N), known for its printers, said it would buy Kofax in a deal of about $1 billion that would double the size of its enterprise software business. Lexmark shares jumped 7.9 percent.

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