US STOCKS-Wall St set to rise after Chinese data

* Chinese imports, exports jump in November

* Netflix gains, to be included in S&P 500

* Futures up: S&P 2.7 pts, Dow 6 pts, Nasdaq 2 pts

* For up-to-the-minute market news see [STXNEWS/US]
(Recasts, adds details, quote)

By Leah Schnurr

NEW YORK, Dec 10 (BestGrowthStock) – Wall Street was set for a
slightly higher open on Friday following encouraging data out
of China and as a two-year high in the S&P 500 had investors
betting on a year-end rally.

A slew of data showed China’s imports and exports jumped in
November, bank lending topped forecasts and property investment
powered ahead. As well, China increased the reserve requirement
for banks but kept interest rates on hold. For details, see
[ID:nL3E6NA0GA]

The move was a milder form of monetary tightening after
expectations that China could raise rates to rein in its
red-hot economy, though a rate hike was still possible.

“They seem to be more interested in lifting bank reserves
than raising rates at this point, and that’s the lesser of the
two evils. So that should be positive for world markets,” said
Paul Mendelsohn, chief investment strategist at Windham
Financial Services in Charlotte, Vermont.

Stocks closed slightly higher on Thursday, with the S&P 500
ending at a two-year high, a trend investors expect to continue
through the rest of the year. The Nasdaq closed at its highest
level since December 2007.

Analysts said the recent surge in financial stocks added to
optimism the market will mount another leg up. After lagging
the rally in September and October, the S&P financial index
(.GSPF: ) has jumped 8.1 percent since the beginning of the
month.

As well, the S&P closed above 1,228, a resistance level
that represents the 61.8 percent Fibonacci retracement of the
2007-2009 bear market slide. The key technical level has proven
to be an obstacle in recent sessions and could lead to more
gains.

S&P 500 futures (SPc2: ) rose 2.7 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 (DJc2: ) gained 6
points, while Nasdaq 100 futures (NDc2: ) added 2 points.

Shares of Netflix Inc (NFLX.O: ) jumped after Standard &
Poor’s said the movie rental company along with F5 Networks Inc
(FFIV.O: ) and Newfield Exploration Co (NFX.N: ) will replace
Office Depot Inc (ODP.N: ), New York Times Co (NYT.N: ) and Eastman
Kodak Co (EK.N: ) in the S&P 500.

As well, Cablevision Systems Corp (CVC.N: ) will replace King
Pharmaceuticals Inc (KG.N: ), which is being bought by Pfizer Inc
(PFE.N: ). [ID:nN09276355]

Netflix rose 4 percent to $198.70 in premarket trading, F5
climbed 3.7 percent to $144.10 and Newfield Exploration gained
2.9 percent to $72.08.

On the data front, the U.S. trade deficit narrowed much
more than expected in October, while import prices in November
rose at their fastest pace in a year. [ID:nN09288102] and
[ID:nN10287864]

Preliminary December consumer sentiment index is on tap at
9:55 a.m. EST (1455 GMT), with a reading of 72.5 expected,
compared with 71.6 in the final November report.

Tenet Healthcare Corp (THC.N: ) surged 51.5 percent to $6.50
after Community Health Systems Inc (CYH.N: ) offered to buy it
for $3.3 billion, but Tenet rejected the bid. Community Health
was down 3.6 percent at $30.50. [ID:nN09268560]

A tentative compromise between U.S. President Barack Obama
and congressional Republicans to extend tax breaks hit
opposition from prominent Democrats, but failed to rattle
investors Thursday. [ID:nN09244537]
(Editing by Jeffrey Benkoe)

US STOCKS-Wall St set to rise after Chinese data