US STOCKS-Futures climb on Fed expectations, earnings

By Chuck Mikolajczak

NEW YORK, Oct 13 (BestGrowthStock) – U.S. stock index futures
climbed on Wednesday on increasing expectations the U.S.
Federal Reserve will move again to prop up the economic
recovery and after an upbeat outlook from Intel.

* U.S. stocks (Read more about the stock market today. ) hit fresh 5-month highs on Tuesday and the
dollar came under pressure as details from the Fed’s latest
meeting showed the U.S. central bank may once again flood
markets with cheap cash “before long” to boost growth. For
details, see [ID:nN12188145]

* The dollar came under broad selling pressure on
Wednesday, and approached key lows against the euro, the Swiss
franc and a basket of currencies on more signs of U.S. monetary
easing. The dollar index (Read more about the global trade. ) (.DXY: ) shed 0.3 percent to 77.097.

* “It’s a continuation of several factors, the Fed minutes,
and certainly that induced a rally right across the board. We
are seeing the dollar lower, gold and oil prices higher. That
is adding risk flavor to the market,” said Peter Cardillo,
chief market economist at Avalon Partners in New York. “Plus,
of course the news from Intel last night.”

* Intel Corp (INTC.O: ) forecast upbeat fourth-quarter sales
and margins late Tuesday as resilient demand from emerging
markets and corporations offset weak consumer spending. That
raised hopes the technology sector could end 2010 on a strong
note. Intel gained 1.5 percent to $20.07 in premarket trade.

* S&P 500 futures (SPc1: ) rose 7.8 points and were above
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures (DJc1: ) jumped 70
points, and Nasdaq 100 futures (NDc1: ) advanced 14.75 points.

* JP Morgan Chase & Co (JPM.N: ) rose 1 percent to $40.80
premarket after the No. 2 U.S. bank by assets reported
quarterly results. [ID:nN11126621]

* Dutch chip equipment maker ASML Holding NV
(ASML.AS: )(ASML.O: ) beat estimates with a big rise in quarterly
profits on a surge in demand and said it should end the year
with a record order book. [ID:nLDE69B179]

* Minutes of the Fed’s meeting in September revealed
officials thought the struggling recovery might soon need more
help and discussed options, including possible adoption of a
price-level target.

* The prospect of the additional Fed stimulus has created
an inverse correlation between the dollar and equities, with a
decline in the greenback triggering a move into equities.

* Chevron Corp (CVX.N: ) forecast third-quarter earnings
would be lower than the previous quarter, weighed down by a
drop in U.S. production, higher costs and the effects from a
weaker dollar. [ID:nN12196879]

* European shares (.FTEU3: ) rose more than 1 percent and
touched a three-week high after the news from the U.S. Fed
minutes. [.EU]

* Asian stocks rose with technology-linked shares leading
the way following the Intel forecast. [ID:nLDE69C06U]
(Editing by Jeffrey Benkoe)

US STOCKS-Futures climb on Fed expectations, earnings