Technology giant Apple Inc. due to hold iPad event
By Polya Lesova, MarketWatch
LONDON (MarketWatch) — U.S. stock futures edged higher Wednesday after the previous session’s selloff, as investors awaited labor-market data and kept an eye on oil, which traded near $100 a barrel.
Futures on the Dow Jones Industrial Average (DJH11 12,025, +3.00, +0.03%) gained 22 points to 12,044 and futures on the Standard & Poor’s 500 stock index (SPH11 1,305, +3.40, +0.26%) climbed 3.20 points to 1,304.30.
The marginal gains come after the blue-chip Dow index (DJIA 12,058, -168.32, -1.38%) slumped 1.4% on Tuesday on worries that sustained increases in oil prices may represent a threat to economic growth.
“The rising cost of oil and uncertainty in the Middle East is probably costing the equity market [7% to 8%] in crude (pardon the pun) terms at the moment,” Deutsche Bank said in a note to clients.
Crude oil for April delivery rose 38 cents Wednesday to $100.01 a barrel in electronic trading on Globex. The rise in oil prices has been underpinned by fears that the unrest in the Mideast and North Africa will disrupt oil supplies from the region. Output in Libya has already been disrupted by the uprising against the regime of Moammar Gadhafi.
Pro-Ghadafi forces captured the oil-refinery city of Brega and also conducted air strikes near the city of Ajdabiya, which is held by rebels and contains a huge arms depot, The Wall Street Journal reported Wednesday.
Mideast equity markets have been battered in recent days. Stocks in Saudi Arabia fell sharply once again Wednesday, with the benchmark TASI index tumbling 5% to 5,262.04 in intraday trading. Meanwhile, Dubai’s DFM stock index sank 3.5% to 1,374.43.
Asian stock markets finished lower overnight, with Japan’s Nikkei Stock Average declining 2.4%. European stocks also posted losses in intraday trade.
Gold futures extended their recent gains, as investors sought the perceived safety of the precious metal. Gold for April delivery climbed $2.40 to $1,433.60 an ounce in electronic trading on Globex after earlier hitting an intraday high of $1,435.30.
On the economic front, the ADP employment report for February is due at 8:15 a.m. Eastern time. The data will come ahead of Friday’s closely watched nonfarm-payrolls report.
After the stock market opens, Federal Reserve Chairman Ben Bernanke will present a monetary-policy report to the U.S. House Financial Services Committee.
At 2 p.m. U.S. Eastern Time, the Fed’s Beige Book of current economic conditions will be released.
In premarket trading, shares of technology giant Apple Inc. (AAPL 349.31, -3.90, -1.10%) edged higher. The firm is expected to unveil a new iPad tablet at an event later Wednesday. Read more about the Apple event.
In earnings news, office-products retailer Staples Inc. (SPLS 20.86, -0.44, -2.07%) said its fiscal fourth-quarter net profit rose 17%.
