Durable Goods Orders Lift Pre-Market Mood in NY

Elena
24 Aug, 2007
New York City

U.S. stock futures were indicating a positive opening Friday, as stronger-than-expected durable goods orders helped offset concerns about slowing housing market. The Commerce Department said that July orders for durable goods surged 5.9% on higher demand for airplanes, vehicles, computers, machinery, steel. Investors were also expecting a report on new home sales for July which is likely to show they continued falling at an annual rate of 820,000 homes.

[R]09:00AM U.S. stock futures advanced, lifted by strong durable goods orders in July.[/R]

U.S. stock futures were indicating a positive opening Friday, as stronger-than-expected durable goods orders helped offset concerns about slowing housing market. The Commerce Department said that July orders for durable goods surged 5.9% on higher demand for airplanes, vehicles, computers, machinery, steel. Investors were also expecting a report on new home sales for July which is likely to show they continued falling at an annual rate of 820,000 homes.

Among companies in focus, Marvell Technology Group ((MRVL)) slipped 7.5% before the opening bell after the chipmaker posted a quarterly net loss, due to higher spending on research and development. Brocade Communications ((BRCD)) fell 1.7% amid disappointing results.

In the retail sector, Gap ((GPS)) rose 3% after reporting a 19% profit increase on reduced costs and improved its annual earnings outlook. The retailer also announced an additional $1.5 billion stock buyback.Ann Taylor ((ANN)) added 3.5% in pre-open trade as a new marketing chief and a $300 million stock repurchase program offset a 27% drop in Q2 profit.

In deal-related news, Home Depot ((HD)) is reportedly likely to receive $1.2 billion less than its originally agreed $10.3 billion for its wholesale distribution arm. S&P 500 futures fell 1.30 points, roughly in line with fair value. Dow Jones industrial average futures slipped 4 points, and Nasdaq 100 futures fell 4 points.