(By Salman - iStockAnalyst Writer)US stock futures pointed to a stronger start on Wednesday even as a government release showed that economy contracted at a worse than expected rate in the first quarter of 2009.
At 8:31 am ET, Standard & Poor's 500 Index futures rose 15.50 points to 859.30. Dow Jones Industrial Average futures increased 64 points to 8031. Nasdaq Composite Index futures advanced 10 points to 1370.
A release by U.S. Department of Commerce showed that real gross domestic product shrank at a 6.1% annualized rate in the first quarter; compared to 6.3% decline in the fourth quarter of 2008.Economists expected a GDP reading of 4.7%.
According to the Wall Street Journal,
Bank of America Corp.'s (
NYSE BAC) embattled chief executive Kenneth Lewis may be forced to give up his role as chairman but is set to win re-election to the bank's board by a wide margin.
Meanwhile,
Citigroup Inc (
NYSE: C) has asked the U.S. Treasury for permission to pay special bonuses to many key employees who have threatened to leave because of pay cap.
According to reports, a 23-month-old succumbed to flu in Texas, becoming the first U.S. citizen to die from the swine flu that's left scores dead in Mexico.
Early on Wednesday, media giant
Time Warner (
NYSE: TWX) announced that its first-quarter net income declined 14% to $661 million, or 55 cents a share, from $771 million, or 64 cents a share, in the prior year quarter. Revenue dropped 7% to $6.95 billion.
Burger King Holdings Inc. (
NYSE: BKC) reported that first-quarter net income rose to $47 million, or 34 cents a share, from $41 million, or 30 cents a share, in the a year ago quarter. Revenue increased 1% to $600 million.
Qwest Communications International Inc. (
NYSE: Q) on Wednesday said that first-quarter profit jumped 37% to $206 million, or 12 cents a share, from $150 million, or 8 cents a share, in the year earlier quarter. Revenue decreased 4% to $3.17 billion.
Late on Tuesday,
E-Trade Financial (
NYSE: ETFC) reported that its fiscal first quarter loss nearly doubled to $233 million, or 41 cents a share, compared with a loss of $91 million, or 20 cents a share, in the same quarter a year ago.
Sun Microsystems Inc. (
NASDAQ: JAVA) said that its quarterly loss widened to $201 million, or 27 cents a share, from a loss of $34 million, or 4 cents a share, in the comparable quarter last year. Revenue plunged to $2.614 billion from $3.266 billion.
Investors are expected to focus on FOMC policy statement which is due for release later in the day.
European stocks advanced in afternoon trade. At 13:24 pm London Time, UK FTSE gained 55.88 points or 1.36% to 4,152.28. The German DAX and French CAC increased 0.92% and 1.23% respectively.
Asian stocks finished higher. The Hang Seng index of Hong Kong rose 401.84 points or 2.76% to 14,956.56. Singapore’s Strait Times jumped 41.16 or 2.28% to 1,849.57 in Singapore.
NYMEX Crude oil for June delivery climbed $1.04 or 2.1% to $50.96 a barrel.
Disclosure: Author does not own any of the stocks discussed here.
