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Stock Futures Rise Ahead of Manufacturing Data, Netflix Pops

NEW YORK ( TheStreet) -- Stock futures on Friday were pointing to a bounceback from two days of losses on Wall Street after data pointed to improvement in the Chinese manufacturing sector and amid indications that the slowdown in the U.S. manufacturing sector will only be temporary.

Futures for the S&P 500 were up 4 points, or 3.76 points above fair value, to 1,755. Futures for the Dow Jones Industrial Average were rising 54 points, or 52.25 points above fair value, to 15,531. Futures for the Nasdaq were up 11.3 points, or 10.62 points above fair value, to 3,380.3.

Netflix ( NFLX ) shares were adding on 2.55% to $330.69 after the movie streaming stock was lifted to "outperform" from "neutral" and the price target increased to $420 from $383 by analysts at Baird, which cited strong original content creation.

American International Group ( AIG ) was retreating more than 4.5% to $49.30. The early reaction to AIG's third-quarter earnings report shows investors are disappointed with the company's continued underwriting losses in its property casualty unit.

Chevron ( CVX ) was dipping 0.79% to $119.01 after the oil giant posted third-quarter earnings of $2.57 a share on revenue of slightly more than $58.5 billion. Earnings came in below the Wall Street consensus of $2.80 a share. Analysts were expecting revenue of $58.4 billion. Third-quarter earnings slipped from a year ago primarily reflecting lower margins for refined products in the period.

The U.S. manufacturing sector grew at its slowest rate for a year in October, according to the final Markit U.S. Manufacturing Purchasing Managers' Index. At 51.8, down from 52.8 in September but above the earlier flash estimate of 51.1, the PMI suggested that the rate of expansion was only modest. However, Markit Economics also reported a more optimistic outlook.

"While better than the earlier flash reading, the final PMI data indicates that the U.S. manufacturing sector ground to a near standstill in October," Chris Williamson, the chief economist at Markit Economics, wrote in the report. "Encouragingly, it looks like companies are expecting the slowdown to be temporary, most likely linked to the government shutdown, as indicated by an upturn in the rate of job creation."

China's official Purchasing Managers' Index jumped to an 18-month high of 51.4 last month, exceeding the predictions of 51.2, according to a survey of economists by Thomson Reuters. Furthermore, the HSBC/Markit final PMI number rose to a seven-month high of 50.9.

The Institute for Supply Management is slated to release its manufacturing index report for October at 10 a.m. EDT. The index is expected to slip to 55 from 56.2 in September.

The benchmark 10-year Treasury was falling 3/32, lifting the yield to 2.57%, while the dollar was up 0.32% to $80.45 according to the U.S. dollar index.

The FTSE in London was off 0.11% while the DAX in Germany was edging lower by 0.19%. The Nikkei 225 in Japan closed off by 0.88%, while the Hong Kong Hang Seng increased 0.19%.

December crude oil futures were rising 2 cents to $96.40 a barrel and December gold futures were falling $6.50 to $1,317.20 an ounce.

-- Written by Andrea Tse in New York

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

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