(Refiles to add dropped word "futures" to first sentence.)
* German, French PMIs positive in August
* Existing home sales, Bernanke speech on tap
* U.S. cash-for-clunkers car rebate plan to end
* Futures up: Dow 48 pts, S&P 500 5.7 pts, Nasdaq 5.25 pts
* For up-to-the-minute market news, click STXNEWS/US
(Adds analyst comment)
By Edward Krudy
NEW YORK, Aug 21 (Reuters) - U.S. stock index futures rose
on Friday after positive economic data from Europe and ahead of
a U.S. report on existing home sales and a speech by Federal
Reserve Chairman Ben Bernanke on the lessons from the financial
crisis.
Purchasing managers indexes showed the German and French
private sectors probably returned to growth in August, a week
after data indicated the European heavy-weights pulled out of
recession in the second quarter. For more, see []
and []
"(The European reports) are really driving the market. They
both came in better than expected, and they both came in
indicating expansion, which is leading investors to believe
that the recession may be over," said Paul Mendelsohn, chief
investment strategist at Windham Financial Services in
Charlotte, Vermont.
At a time when investors are searching for signs that the
nascent U.S. housing recovery is gathering momentum, a National
Association of Realtors survey is expected to show sales of
existing homes likely rose to their highest level in 10 months
in July, according to a Reuters poll. []
Economists surveyed by Reuters predicted sales of
previously-owned homes climbed to a seasonally adjusted annual
rate of 5 million in July from 4.89 million units in June.
Bernanke is scheduled to speak to a gathering in Jackson
Hole, Wyoming, on the lessons learned from the financial crisis
and efforts to aid the economic recovery. Investors will scour
his speech for clues into the Fed's thinking on the economy.
Both Bernanke's speech and the housing data are due at 10
a.m. (1400 GMT).
S&P 500 futures <SPc1> rose 5.70 points, and were above
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 <DJc1> gained 48
points, and Nasdaq 100 futures <NDc1> were up 5.25 points.
In news that hit shares in Japanese automakers overnight,
the popular U.S. government "cash-for-clunkers" program,
offering rebates of up to $4,500 to car buyers trading in
older, fuel-thirsty vehicles, will end on Monday, the
Transportation Department said. []
In a potential lucrative joint truck venture, Caterpillar
Inc <CAT.N> and Navistar International Corp <NAV.N> are in
talks with China's Anhui Jianghuai Automobile Co <600418.SS> to
gain a foothold in the country's $22 billion heavy-truck
market, a source familiar with the matter said on Friday.
[]
(Editing by Padraic Cassidy)
