By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- Stock futures surged Friday, pointing to
a big opening for Wall Street on Friday, after the Bank of Japan
delivered a stimulus surprise that powered gains for global equity
markets.
Later, investors will get a batch of U.S. data, including
consumer spending and a Chicago-area manufacturing survey.
Futures for the S&P 500 index (SPZ4) surged 21.30 points, or
1%, to 2,009.90, while those for the Dow Jones Industrial Average
(DJZ4) climbed 182 points, or 1.1%, to 17,296. Futures for the
Nasdaq-100 index (NDZ4) jumped 59 points, or 1.4%, to 4,148.50.
The BOJ board voted 5-4 in favor of increasing the central
bank's annual asset purchases to 80 trillion yen, from a prior
target range of Yen60 trillion to Yen70 trillion, amid worries
about dwindling inflation and downbeat economic data. The Nikkei
225 index soared nearly 5%, while the yen hit a near seven-year
low, which put further pressure on gold.
"The U.S. sends 4.5% of it exports to Japan, and so any action
that can: (a) ward off the threat of deflation and the crippling
effect that has on consumer expenditure; (b) give a boost to the
Japanese economy, which is the world's third largest, has to be
seen as a strong positive for future earnings potential," said
Stephen Pope, managing partner at Spotlight Ideas.
On Thursday, upbeat economic data and earnings pushed U.S.
stocks higher. The Dow industrials (DJI) vaulted 200 points higher,
setting it to end the week over 2% higher. The S&P 500 index
(SPX) is set to end the week 1.5% higher, a gain of just over 1%
for the month.
More data at month's end: There's a batch of data on Friday as
the trading month ends. Analysts polled by MarketWatch predict U.S.
consumer spending -- one of three main legs holding up the economy
-- rose by a mere 0.1% in September. That report is out at 8:30
a.m. Eastern time. At the same time, the employment-cost index for
the third quarter is due, and is expected to rise 0.5% on an
annualized basis.
Consumer sentiment for October is due at 9:55 a.m. Eastern Time,
with economists expecting that data to remain unchanged at 86.4 and
remain near a 2014 high. Just ahead of that data, the Chicago
purchasing managers index for October will be released.
Stocks to watch: Earnings from Exxon Mobil Corp. (XOM), Chevron
Corp. (CVX), AbbVie Inc. (ABBV) and Madison Square Garden Co.
(MSGNV) are all on the early earnings list. Madison Square Garden
has been in the news lately on talk it will split.
Hilton Worldwide Holdings (HLT) lifted its full-year outlook
Friday as it reported third-quarter earnings of 19 cents a
share.
Starbucks Corp. (SBUX) is down over 3% after its first-quarter
outlook fell below forecasts. GoPro Inc. (GPRO) is up 17% in
premarket after results topped Wall Street estimates, while
LinkedIn Corp. (LNKD) was up 5% after the company's sales outlook
was a bit weaker than expected, but results also came in slightly
better than forecast.
Gold sinks as dollar soars: Gold prices (GCZ4) were trading at
levels not seen since 2010, dropping nearly $25 to $1,174.30, with
the dollar (USDJPY) trading around Yen111.71. Oil (CLZ4) also
pulled back. Asian markets were higher, with the Nikkei closing at
its highest level in nearly seven years, on the back of the
Japanese stimulus. European stocks rallied along with global
stocks.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires