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US STOCKS-Futures edge up after Geithner comments, China data

Published 09/11/2009, 07:29 AM
Updated 09/11/2009, 07:33 AM
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* U.S. can end some of extraordinary support-Geithner

* Chinese data surprises on upside in August

* Futures up: S&P 1.1 pts, Dow 1 pt, Nasdaq 1 pt

NEW YORK, Sept 11 (Reuters) - U.S. stock index futures rose modestly on Friday as positive comments from Treasury Secretary Timothy Geithner and surprisingly strong data from China supported optimism for a global economic recovery.

* Geithner said on Thursday that with a strengthening economy the government can end some of the extraordinary support put in place for markets and prepare for a slow recovery.

* Appearing before the Congressional Oversight Panel for the $700 billion Troubled Asset Relief Program, Geithner said the economy was in far better shape now than a year ago when it was "on the verge of collapse," though it still had problems.

* Chinese industrial output and other economic data surprised on the upside in August, suggesting its recovery is on a solid course but not so strong that Beijing will need to halt financial stimulus any time soon.

* U.S. data on tap includes the Reuters/University of Michigan Surveys of Consumers preliminary September consumer sentiment index at 9:55 a.m. EDT. Economists in a Reuters survey expect a reading of 67.3 compared with 65.7 in the final August report.

* Investors have been looking for any signs of life from the consumer as anemic spending remains one of the biggest challenges facing a strong recovery.

* S&P 500 futures rose 1.10 points but were below 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 gained 1 point, and Nasdaq 100 futures added 1 point.

* Morgan Stanley Chief Executive John Mack is stepping down and will be replaced by retail brokerage head James Gorman as the bank embraces stable businesses after losing big on risky ones.

* Campbell Soup Co is due to report fourth-quarter earnings, with analysts expecting earnings per share of 26 cents, in line with last year.

* Shares of National Semiconductor Corp slipped 1.1 percent after the closing bell as the chipmaker reported better-than-expected first-quarter results.

* Delta Air Lines Inc is in talks to invest in Japan Airlines Corp and become its top shareholder, Japanese public broadcaster NHK reported.

* Stocks gained for a fifth straight session Thursday in their longest string of gains since November as a bright outlook from consumer product group Procter & Gamble Co and a successful Treasury bond auction boosted investors' confidence.

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