This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Futures Pare Gains on Soft Manufacturing as Ford Surges

NEW YORK (TheStreet) -- Stock futures were paring gains Thursday after a downcast U.S. manufacturing report though the index remained poised to open higher Thursday following the S&P 500's first down day in six sessions.

Futures for the S&P 500 were rising 4 points, or 5.02 points above fair value, to 1,745.75. Futures for the Dow Jones Industrial Average were gaining by 48 points, or 51.67 points above fair value, to 15,399. Futures for the Nasdaq were up 2.8 points, or 4.8 points above fair value, to 3,342.8.

The U.S. manufacturing sector grew at its weakest pace in a year in October, according to the Markit Flash U.S. Manufacturing Purchasing Managers' Index. The index registered 51.1, down from 52.8 in September, and was consistent with only a modest rate of expansion.

"The flash PMI provides the first insight into how business fared against the backdrop of the government shutdown in October, and suggests that the disruptions and uncertainty caused by the crisis hit companies hard," Chris Williamson, chief economist at Markit, commented in a statement.

Despite the tepid U.S. manufacturing number, investors were still garnering some optimism about the global economy thanks to upbeat international results from companies such as Ford (F - Get Report) and 3M (MMM - Get Report) and the improvement in China manufacturing data. The flash China Manufacturing PMI came in at a seven-month high of 50.9 in October, up from 50.2 in September, according to HSBC and Markit Economics.

3M shares were rising 0.65% to $124 after the diversified technology company posted third-quarter earnings that topped expectations by three cents at $1.78 a share and better than expected revenue, as all units booked stronger sales across all the geographic segments.

Must Read: Markets Drop as Caterpillar Slip Suggests Slowdown

Ford F shares were gaining 3.65% to $18.17 after the automaker reported a record third-quarter pretax profit with continued strong earnings in North America and improvement in every international sector.

PulteGroup (PHM - Get Report) was adding on 2.94% to $17.17 after the homebuilder beat third-quarter estimates by nine cents at 45 cents a share on stronger-than-expected revenue even as new home orders fell amid the increase in mortgage rates and U.S. debt default fears. Higher revenues for the period were driven by an 11% increase in average selling prices to $310,000, combined with a 9% increase in closings to 4,817 homes.

Amazon (AMZN), the world's largest online retailer, is expected by analysts after Thursday's closing bell to report a third-quarter loss of 9 cents a share on revenue of $16.76 billion. Amazon posted a year-earlier loss of $274 million, or 60 cents a share, which included a loss of 37 cents related to its investment in LivingSocial. Shares were rising 0.37% to $327.95 in premarket trading.

Software giant Microsoft (MSFT) is forecast to post earnings of 54 cents a share in its fiscal first quarter on revenue of $17.79 billion.

In other economic news, initial jobless claims fell by 12,000 to 350,000 in the week of Oct. 19, according to the Labor Department. That's still more than the average economist expectation of 340,000, though the data hasn't been entirely clear since last month due to ongoing processing issues in California stemming from computer systems upgrades.

Meanwhile the U.S. trade deficit widened to $38.8 billion in August from an upwardly revised $38.6 billion in July.

The Labor Department's Job Openings and Labor Turnover Survey for August is expected at 10 a.m.

The FTSE in London was up 0.38% and the DAX in Germany was up 0.56%. The Nikkei 225 in Japan was higher by 0.42% and the Hong Kong Hang Seng slipped 0.71%.

December crude oil futures were up 38 cents to $97.24 a barrel and December gold futures were rising $3.80 to $1,337.80 an ounce.

The benchmark 10-year Treasury was down 1/32, raising the yield to 2.507%. The dollar was off 0.11% to $79.18 according to the U.S. dollar index.

U.S. stocks slumped Wednesday, slipping from new highs, as Caterpillar (CAT), the construction and mining equipment leader, posted earnings that fell short of expectations and China, the world's second-largest economy, revealed a spate of bad business loans.

-- Written by Andrea Tse in New York

>To contact the writer of this article, click here: Andrea Tse.>  

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $13.56 0.00%
MMM $167.38 0.00%
PHM $18.39 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs