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Futures Rise On Stimulus Hopes; Best Buy (BBY) Retreats

 August 21, 2012 09:10 AM
 

(By Balachander) U.S. stock index futures pointed to a higher opening on the Wall Street amid increasing hopes of stimulus support by the euro zone leaders to resolve the region's debt woes.

Mini Dow Industrial Average futures added 37 points to 13,266. The Nasdaq futures rose 11.50 points to 2,791.50. Standard and Poor's 500 futures inched 4.60 points higher to 1,419.30.

Investors also look ahead to the latest minutes from the Federal Open Market Committee (FOMC) that will be published on Wednesday. Data on new home sales and existing home sales as well as the weekly jobless claims report are also due this week.

On Monday, U.S. stocks ended on a flat note amid fresh concerns about the debt crisis in Europe and investors look ahead to data this week to measure the strength of the domestic economic recovery.

Hot Stocks Of The Day:BBY, FB, NDSN, URBN, MDT, TECD, BKS, DSW, DELL

In corporate news, Best Buy Co. Inc. (NYSE:BBY) tumbled 8.98 percent in premarket after the struggling consumer electronics retailer, which on Monday named a new CEO, suspended its full-year guidance after reporting a 90 percent plunge in quarterly earnings due to restructuring charges and soft sales.

Facebook Inc. (NASDAQ:FB) dropped 1.70 percent in premarket after a regulatory filing showed the social-networking company's director Peter Thiel sold majority of his shares in the company.

Nordson Corp. (NASDAQ:NDSN) surged 14.55 percent in premarket after the maker precision material dispensing systems issued an upbeat view for the fourth quarter amid double-digit sales growth in the third quarter.

Urban Outfitters Inc. (NASDAQ:URBN) jumped 15.41 percent after the specialty retailer reported a 8.1 percent increase in quarterly earnings on strong comparable store sales and higher revenue. Results exceeded Wall Street expectations.

Medtronic Inc. (NYSE:MDT) shed 1.45 percent after the medical technology company reported first-quarter results in line with market expectations and it reiterated its outlook for fiscal 2013.

Tech Data Corp. (NASDAQ:TECD) lost 9.59 percent in premarket after the wholesale distributor of technology products reported a 31.2 percent decline in quarterly earnings as sales fell and margins shrank.

DSW Inc. (NYSE:DSW) posted better-than-expected quarterly earnings, helped by comparable sales growth and the footwear retailer reiterated its full-year forecast. Shares inched higher in premarket.

Barnes & Noble Inc. (NYSE:BKS) gained 5.26 percent in premarket after the bookstore chain reported a narrower-than-expected quarterly loss. The company's NOOK business saw digital content sales jump 46 percent, while the segment posted flat revenue.

Dell Inc. (NASDAQ:DELL) is due to post its quarterly results after the market closes. The PC maker is expected to earn 45 cents a share for the second quarter on revenue of $14.66 billion.

Global Markets:

European markets traded in green, with Germany's DAX adding 0.50 percent to trade at 7,068.77. France's CAC40 advanced 0.70 percent to 3,504.95. U.K.'s FTSE 100 rose 0.33 percent to trade at 5,843.63.
      
Among Asian markets, China's Shanghai Stock Exchange Composite Index rose 0.54 percent to finish at 2,118.27. Japan's Nikkei 225 shed 0.16 percent to end at 9,156.92. Hong Kong's Hang Seng Index slipped 0.02 percent to end at 20,100.09. India's BSE Sensex closed at 17,885.26, up 1.10 percent.
 

Market Scan:

Ahead of the opening bell, crude oil futures rose 0.80 percent to $96.74 per barrel. Gold futures inched up 0.36 percent to $1,628.9 per ounce.
           
In the currency market, the euro climbed 0.70 percent against the U.S. dollar to 1.2433 and the British pound added 0.35 percent to 1.5767. The dollar rose 0.10 percent against the Japanese yen to 79.5100.


Rich
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