Wall St. set for modest gains at open after three-day slump
By Chuck Mikolajczak
NEW YORK (Reuters) - U.S. stocks were poised to open modestly higher on Wednesday, putting the S&P 500 on track to snap a three-session streak of declines, ahead of data on the housing market.
Providing support was a renewed pledge by European Central Bank President Mario Draghi to keep monetary policy loose for an extended period to push inflation in the euro zone closer to the targeted two percent level.
"Futures are up, it may have been reacting more to the rise in Europe - Draghi came out and said he is going to do whatever is necessary" regarding Quantitative Easing, said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
"That lift from Europe is transferring over here."
S&P 500 e-mini futures (ESc1) were rising 4 points and fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicated a slightly higher open. Dow Jones industrial average e-mini futures (1YMc1) were up 35 points and Nasdaq 100 e-mini futures (NQc1) were higher by 9 points.
The S&P has fallen for three straight sessions, shedding 1.4 percent since its most recent high of 2,011.36, which was the 34th record close for the benchmark S&P index this year.
Bed, Bath & Beyond (BBBY.O) shares were trading up 5.4 percent to $66.05 in premarket trading after the home furnishings retailer reported better-than-expected quarterly revenue as discounts and promotions lured more shoppers.
New home sales data for August is due at 10:00 a.m. Sales of single-family homes are expected to increase to 430,000 from 412,000 in July.
KB Home (KBH.N) shares were trading down 5.4 percent to $16.05 before the opening bell after the company reported third-quarter earnings and revenue that fell short of estimates.
Accenture (ACN.N) shares were off 2.6 percent to $77.50 in premarket trading after posting fourth-quarter results and forecasting first-quarter revenue largely below analysts' expectations.
Merrimack Pharmaceuticals (MACK.O) shares were surging in premarket trade, up 16.1 percent to $8.35 after the company said it reached a deal to develop and market Merrimack's pancreatic cancer drug outside the U.S. with Baxter International (BAX.N).
(Editing by Bernadette Baum)
