–Stock futures rise on Spain optimism; Dow on track for fourth-straight gain
–Europe broadly higher after report that EC, Spain working toward asking for bailout funds
–Apple shares gain in premarket as iPhone 5 sales kick off
By Tomi Kilgore
NEW YORK–U.S. stock futures rose, putting blue chips on track to post a fourth-straight gain, with investor sentiment
lifted by a report that Spain was closer to receiving bailout funds.
About 90 minutes ahead of the open, Dow Jones Industrial Average futures added 43 points, or 0.3%, to 13558. The Dow,
which has advanced 44 points over the last three sessions, has gained ground on the last four Fridays, and on 12 of the
Standard & Poor’s 500-stock index futures tacked on four points, or 0.3%, to 1458 and Nasdaq 100 futures advanced
eight points, or 0.3%, to 2861. Changes in stock futures don’t always accurately predict stock moves after the opening
There are no major economic data scheduled for release.
Shares of Apple advanced 0.7% in premarket trading, to lift the stock back above the $ 700 mark, as global sales of the
iPhone 5 kicked off to large crowds.
Amid the iPhone fanfare, Research in Motion dropped 2.3% after the maker of rival BlackBerry smartphones said they
were experiencing service problems in Europe, the Middle East and Africa.
European markets were broadly higher, with the Stoxx Europe 600 up 0.4%, as sentiment was buoyed by a report that
Spain was preparing to ask for bailout funds. According to a report in the Financial Times, the European Commission and
Spain are working toward ensuring structural reforms are in place that would meet the demands of international lenders.
Spain’s IBEX-35 index gained 0.9% while the yield on benchmark 10-year government bonds declined.
Asian markets gained ground, bouncing up from the previous session’s sharp losses, with a rally in Japanese
electronics company Sharp helping to give sentiment a lift. Japan’s Nikkei Stock Average added 0.3%, with Sharp jumping
5% after the Mainichi Shimbun reported the company was in talks with Intel on a capital alliance. China’s Shanghai
Composite bounced off a 3 1/2-year low to close up 0.1%, but still suffered the biggest weekly loss since October.
Crude-oil futures ran up 1.2% to $ 92.98 a barrel, after falling 7.2% over the previous four sessions, while gold
futures were up 0.3% to $ 1775.60 an ounce. The dollar inched lower against both the euro and the yen.
In other corporate news, Oracle tacked on 0.3% after the business-software company reported fiscal first-quarter
earnings that were in line with expectations and software sales and margins that improved, although overall revenue for
the quarter came up a bit short of estimates.
McDonald’s added 0.4% after the Dow component raised its quarterly dividend by 10% to 77 cents a share, payable Dec.
17 to shareholders of record on Dec. 3.
Texas Instruments ticked up 0.1% after the semiconductor maker also raised its dividend, by 24% to 21 cents a share.
KB Home declined 2.4% after the home builder reported a surprise profit for the fiscal third quarter, citing improved
home deliveries and at higher prices, but revenue that fell short of forecasts.
Vivus slumped 12% after the company said it expected a European Medicines Agency committee to recommend against
granting marketing approval for the use of Qsiva for the treatment of obesity.
Michael Kors climbed 3.1% after the luxury-accessories designer raised its fiscal second-quarter and full-year
earnings outlook after seeing same-store sales for the 11 weeks ended Sept. 15 rise 45.1% over same period a year ago.
Write to Tomi Kilgore at [email protected]
(END) Dow Jones Newswires 09-21-120823ET Copyright (c) 2012 Dow Jones & Company, Inc.