U.S. Stock Index Futures Up; Chipmakers Eyed

Reuters ^ | 9-10-2010 | Blaise Robinson

[blam]

U.S. Stock Index Futures Up; Chipmakers Eyed

Blaise Robinson
Fri Sep 10, 2010 5:05am EDT

* U.S. stock index futures pointed to a slightly higher open on Wall Street on Friday, with futures for the S&P 500 SPc1 up 0.3 percent, Dow Jones DJc1 futures up 0.1 percent and Nasdaq 100 NDc1 futures up 0.4 percent at 0850 GMT.

* Technology shares will be in the spotlight after chipmakers National Semiconductor (NSM.N) and Texas Instruments Inc (TXN.N) issued quarterly financial targets that stoked investor worries about a sluggish economy.

* Shares of National Semiconductor traded in Frankfurt (NSM.F) were down 6.7 percent, while Texas Instrments shares traded in Frankfurt (TXN.F) were down 0.4 percent.

* Smith & Wesson's (SWHC.O) second-quarter forecast fell short of estimates as the 158-year-old company saw demand for firearms soften after rising sharply last year, sending its shares down 10 percent. Its Frankfurt-traded shares (SMWS.F) were down 8.2 percent. ]

* Video game publishers will be in focus after data showed U.S. retail sales of video game equipment and software fell 10 percent in August, according to research group NPD, as the industry continued a months-long slump.

* BP (BP.L) said it would delay the release of its third quarter results by a week because of added complexities in its accounts due to the Gulf of Mexico oil spill.

* Shares in Nokia (NOK1V.HE), the world's top cellphone maker, surged 5 percent after saying it brought in Microsoft's (MSFT.O) Stephen Elop to replace its embattled chief executive and lead a renewed effort to compete in the smartphone market.

* European stocks were down 0.5 percent in morning trade, slipping from a four-month closing high hit in the previous session, led lower by banking stocks which were hurt by reports Deutsche Bank

[snip]

[blam]

Us chip-makers always say that chip companies are the first down in a bad economy and the first to rebound. Is this indicating a coming 'double-dip?'

[SkyPilot]

Anyone throwing their money into the stock market would be better off going to Atlantic City or Vegas.

At least they would get a good buffet.

[Deagle]

Really surprised at the market these days... I keep wondering when it will crash (yea, pessimist I am). Just can’t see anything good enough going on that would instill enough confidence in markets to actually be involved.

Heck, even if the Republicans win both houses in November, the market will still be marginal (but at least hopeful). Don’t really understand why it is creeping up except that maybe the institutions are trying to get a few dollars before the collapse.

[central_va]

We’ve finally reached corporate global utopia where their profits are independent of how the average man in the US is doing economically.

[blam]

Here's Who To Invest In If The GOP Wins Big In November

[dawn53]

I don’t understand it either, but I’ve decided bad jobs data is good news for companies (in some weird way.) Companies have scaled back their workforce, cut pay, and as long as the job market stays bad, they can hire workers for less pay than if the job market was healthy. All this results in a positive bottom line for the company.

I know quite a few people who are “underemployed”...working jobs that would have paid much more just a few years ago, but they’re willing to take the job, or stay at the job because, well, it’s a job and there aren’t a lot of other opportunities out there.

Example, GaTech engineering grads (friends of ours) taking jobs in enginering for $37,000. Accounting majors taking jobs for $35,000. Those are low wages considering the degree, but they were the only jobs available and they are with large companies who offer benefits, so the graduates gobbled them up.

That’s the only reason I can see why the stock market is performing well...profits are up, not because of sales, but because of cutting back on employee expenses...everybody’s working harder, resulting in more productivity with less employees, because they want to keep their jobs.

[Deagle]

Excellent ideas... not sure if they hold up, but today, who knows...

I really am holding onto the bear and assume that things will get much worse before they get better. I see so much loss in the personnel housing market and the commercial market that I just can’t see any quick recovery. That is going to be the determinate today. I disregard anything that the FEDS say about any of this...

I hope I’m wrong, but am planning for the worst. If it works out better, all for the good. Hopefully, the election this November will change things and maybe even bring some hope to the equation.