By Leslie Wines, MarketWatch
Dec 16, 2005
U.S. stocks are set to open higher Friday, with gains likely to be compounded
by options-related volatility and General Motors in focus after its chief
executive forecast revenue growth.
The futures contract for the Dow Jones Industrial Average was up 46 points
at 10,975.
Futures contracts for the S&P 500 and the Nasdaq 100 were up 6.60 points
at 1,284.40 and up 5 points at 1,722.
On Thursday stocks closed slightly lower, after a session made volatile by
the early impact of Friday's "quadruple witching" -- simultaneous expirations
of index futures, options on index futures, stock options and individual stock
futures.
The expirations tend to create volatility and exaggerate stock price
movements.
On Friday the expirations should work in favor of the stock market and
drive prices higher.
But gains may be limited in the retail sector as" retailers are bracing
for another questionable holiday shopping weekend," according to Marc Pado,
U.S. market strategist at Cantor Fitzgerald.
Crude futures were below $60 a barrel in premarket electronic trade, a
factor which should lend support to stocks. The front-month contract last was
down 49 cents at $59.50 a barrel.
In other positive news, the Commerce Department said the current account
deficit narrowed by 1% to $195.8 billion in the third quarter, marking the
second straight quarter of a narrowing deficit.
Gold futures were on the rise once more, last trading up $1.50 at $508.10
an ounce. On Monday, the contract touched a 25-year high of $543 an ounce,
rallying on strong physical demand and inflation fears.
The dollar weakened against the euro after a better-than-forecast reading
of a Germany's influential Ifo confidence survey, but later regained some
strength after the news of a narrower current account deficit.
The euro was quoted up 0.2% at $1.1988.
The dollar, which has endured a rout this week due to strong signals from
the Federal Reserve that its program of quarter-point rate increases is
nearing an end, last was down 0.2% at 116.16 yen.
Treasurys were carried higher in early dealings. The benchmark 10-year
note last was up 7/32 at 100-16/32 with a yield of 4.441%
Stocks in play
General Motors Corp. was 1 cent higher at $22.14 before the opening in
electronic trade. The automaker's chairman and chief executive Rick Wagoner
told revelers at a holiday party that the company's revenue will improve.
Oracle was down 4 cents at $12.79 before the opening. Merrill Lynch
upgraded Oracle to buy following earnings results, while William Blair
downgraded it.
XM Satellite Radio Holdings could be active after the opening. J.P. Morgan
downgraded the stock to neutral from overweight, and cut its peer Sirius to
underweight from neutral.
This MarketWatch news update is provided to you courtesy of Thomson
Financial.
This is Thomson Financial's Market Commentary, which is issued three times
daily; Pre-Open ( 9:00 a.m.), Post-Open (10:15 a.m.), and Close (5:00 p.m.).
The information herein is believed to be true and accurate. We take no
responsibility for inaccurate information and reserve the right to update our
reports. If you have any questions please e-mail James Sang at
james.sang@tfn.com or call 646.822.6233. For more information about
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SOURCE Thomson Financial Corporate Group
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