Market Hustle: Stock Futures Push Higher Following S&P 500 Record Close
NEW YORK (TheStreet) -- U.S. stock futures were edging higher Wednesday after another record close for the S&P 500 and ahead of a light day of economic data.
Dow Jones Industrial Average futures were up 24 points, or 24.5 points above fair value, to 16,678. S&P 500 futures were up 3.5 points, or 3.34 points above fair value, to 1,912.75. Nasdaq futures were up 3.5 points, or 3.29 points above fair value, to 3,724.8.
Stocks rose Tuesday with the S&P 500 hitting a record closing high amid a raft of positive economic data, including rising consumer confidence and service sector expansion.
International markets were flat to higher following the upbeat U.S. data. The FTSE 100 was up 0.01%, the DAX was up 0.05%, the Nikkei 225 closed up 0.24%, and the Hong Kong Hang Seng finished higher by 0.59%.
- Allergan (AGN) and Valeant Pharmaceuticals (VRX) were both trading incrementally lower. Valeant announced that it is increasing its merger proposal for Allergan by $10 per share to $58.30. Twitter (TWTR) was advancing 3.87% after the stock was raised to "buy" from "neutral" at Nomura. "We believe that the market has now priced in the expectation that Twitter remains a niche social media product. We believe risk / reward is much more favorable now ..." noted the Nomura analysts.
- Toll Brothers (TOL) was popping 4.21% after posting on Wednesday fiscal second-quarter profit of $65.2 million, or 35 cents a share, up from year-earlier earnings of $24.7 million, or 14 cents a share. Michael Kors (KORS) was up 2.36% after the company provided optimistic full-year guidance. Michael Kors exceeded quarterly earnings expectations by 10 cents at 78 cents a share as same-store sales jumped more than 26%.
- Sam Stovall, managing director of U.S. equity strategy at S&P Capital IQ, wrote in a client note that the S&P 500 has regained its bullish bias since June 2013, climbing more than 18%, and is now 13% higher than its pre-taper peak. Yet things are certainly not "back to normal," said Stovall. The yield on the 10-year note is more than 80 basis points above where it was on April 30, 2013, and higher-yielding stocks are still lagging well behind their lower-yielding brethren. "When screening for high-yielding investment candidates, we recommend that investors don't 'yield to temptation' by stretching for income and turning a blind eye to valuations and volatility."
>> Read More: S&P 500 Jumps to Record High on Improving Consumer Confidence Best Stocks for 2014
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