Stock Futures Rise as Summers Bows Out
NEW YORK ( TheStreet) -- U.S. stock futures were pointing to a higher open on Wall Street Monday as global markets strengthened on the decision by Larry Summers, a former U.S. Treasury Secretary and economic adviser to President Obama, to withdraw as a candidate to succeed Ben Bernanke as the next Federal Reserve chairman. Summers' move appears to leave Fed Vice Chair Janet Yellen as the frontrunner for the position and fuels hopes for a protracted Fed stimulus program.
"As Yellen is perceived to be the most dovish candidate, we would expect the news to be positive for both bonds and equities on Monday morning," Paul Ashworth, chief U.S. economist at Capital Economics in Toronto, commented in a note.
Deals developments were also boosting market sentiment.
Futures for the S&P 500 were rising 16.75 points, or 18.56 points above fair value, to 1,698.75 while futures for the Dow Jones Industrial Average were gaining 154 points, or 179.94 points above fair value, to 15,465. Futures for the Nasdaq were adding 26.50 points, or 28.48 points above fair value, to 3,198.
In company news, Packaging Corp. of America
Chrysler is planning to file documents for its initial public offering this week after majority owner Fiat and the health care trust that owns the rest of the automaker failed to agree a market price in a long-running dispute, The Financial Times reported.
In other Boeing developments, the Dreamliner 787-9's maiden flight is expected to take place this week.
A number of U.S. economic releases were scheduled for Monday.
The New York Federal Reserve's Empire State manufacturing index showed a smaller-than-expected increase to 6.29 for September from 8.24 in August; an increase to 9.2 was expected, according to a Thomson Reuters poll of economists. It was the lowest level since May but remained in expansionary territory for the fourth consecutive month.
At 9:15 a.m., the Federal Reserve is forecast to report that industrial production rose 0.4% in August after being flat in July. The report is expected to say also that capacity utilization rose to 77.8% from 77.6%.