US STOCKS-Wall St to jump at open on China comments

* China denies report on euro-zone holdings

* GDP grows at slower pace than previous estimate

* Futures up: Dow 161 pts, S&P 23.1 pts, Nasdaq 37.50 pts

* For up-to-the-minute market news see [STXNEWS/US]

By Edward Krudy

NEW YORK, May 27 (BestGrowthStock) – U.S. stock index futures
pointed to a rise of about 2 percent at the open on Thursday
after China denied a report it was reviewing its holdings in
euro-zone sovereign bonds due to the region’s debt crisis.

The People’s Bank of China said a Financial Times report
that Beijing was concerned about its euro-zone exposure was
groundless. The FT report cut short a rally in the last session
and pushed indexes into the red as investors remained nervous
after recent heavy losses.

“The comments from China helped ease a lot of the tensions
over Europe,” said Dan Cook, senior market analyst at IG
Markets in Chicago. “Some people were considering the
destruction of the euro almost imminent. At least from China’s
comments, it doesn’t seem like they’re overly concerned about
it.”

St. Louis Federal Reserve President James Bullard said he
did not expect contagion from Europe’s fiscal problems to reach
the United States, adding that the world’s biggest economy may
actually benefit from a “flight to safety.” [ID:nWEB3438]

In the latest U.S. economic data, first-quarter gross
domestic product grew at a slower pace than previously
estimated, while weekly jobless claims fell, suggesting the
battered labor market is recovering but only slowly. The data
was not enough to deter investors looking for bargains after
market declines of more than 10 percent over the last month.

S&P 500 futures (SPc1: ) jumped 23.1 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: ) rose 161
points, and Nasdaq 100 futures (NDc1: ) put on 37.50 points.

In a familiar pattern seen in recent rebounds, financial
and natural resource shares, among the casualties in the
sell-off, rose in premarket trade. Citigroup Inc (C.N: ) was up
3.9 percent to $4.01, while United States Steel Corp (X.N: )
added 3.1 percent to $46.50.

In earnings news, H.J. Heinz Co (HNZ.N: ) posted higher
quarterly profit, but also said annual earnings would be hit by
currency fluctuations. The shares rose 1.7 percent to $45.
[ID:nN27211489]

Warehouse club operator Costco Wholesale Corp (COST.O: ) and
close-out retailer Big Lots Inc (BIG.N: ) both recorded higher
quarterly profit. Costco shares rose 2.9 percent to $57.60,
while Big Lots rose 3.2 percent to $37. [ID:nSGE64Q071] and
[ID:nSGE64Q0AX]

NetApp Inc (NTAP.O: ) rose nearly 8 percent to $35 after the
company’s earnings topped estimates and it issued a strong
outlook. At least four brokerages raised their price target on
the stock. [ID:nN26223250]

Shares of Pfizer Inc (PFE.N: ) rose 1.6 percent to $15.35
after the drugmaker said it was halting recruitment of patients
for a heart failure clinical study involving its drug Inspra
because the study reached its main efficacy goal early.
[ID:nN27245149]

Stock Market Analysis

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

US STOCKS-Wall St to jump at open on China comments