Stocks Set For Higher Start
Stock futures pointed to a modestly higher open Friday on better-than-expected housing data.
Nasdaq futures climbed 2 points vs. fair value, S&P 500 futures gained 4 points and Dow futures rose 33 points.
In economic news, the housing sector showed some signs of life. Housing starts in April rose 8.2% to an annualized rate of 1.032 million units, rebounding from a 17-year low in March. That was much better than the forecast for 940,000 units. Building permits climbed 4.9% to an annualized rate of 978,000, well above forecasts for 912,000 units.
Crude oil swelled above $127 a barrel on talks of increased Chinese demand.
The University of Michigan consumer sentiment index is due out at 10 a.m. EDT.
At noon EDT, Treasury Secretary Hank Paulson is slated to speak on the current housing and credit conditions.
Big early gainers include China Finance Online (), which surged 13% in the pre-open after it raised its Q1 outlook. The Chinese financial data firm sees sales in a range of $10.5 million to $10.8 million vs. views for $10.4 million. Net income is pegged at $4.5 million to $5 million compared to previous guidance of $3.7 million to $4 million.
BMC Software () gained 5% in the pre-market after it reported strong earnings and gave a rosy outlook. Late Thursday, the business software maker delivered fiscal Q4 profit of 63 cents a share, excluding items. That was up 57% from a year ago and 12 cents above views. Sales rose 11% to $466.9 million, also above views. BMC guided fiscal 2009 profit in a range of $2.10 to $2.20 a share vs. analysts estimates of $2.07.
Yahoo () signed a multi-year advertising deal with U.K.’s WPP Group. Yahoo also is close to penning an advertising pact with Google ().
Meanwhile, Yahoo Chairman Roy Bostock responded to a proposed proxy fight from billionaire stakeholder Carl Icahn, who has lobbied for a new board of directors after Yahoo spurned a buyout offer from Microsoft (). Bostock said Icahn’s position “reflects a significant misunderstanding of the facts about the Microsoft proposal and the diligence with which our board evaluated and responded to that proposal.” Shares of Yahoo edged lower in the pre-market.