* Indexes on track for third straight week of gains
* Boeing may be able to boost Q4 deliveries of 787s
* Priceline profit beats expectations, but outlook weak
* Futures up: Dow 64 pts, S&P 3.8 pts, Nasdaq 6 pts
By Ryan Vlastelica
NEW YORK, May 10 U.S. stock index futures edged
higher on Friday as the market's recent momentum returned,
putting equities on track for a strong week that repeatedly took
indexes to record highs.
The length of the recent rally has surprised many, and it
may be difficult for the upward momentum to continue without
further catalysts, such as first-quarter earnings reports, which
are nearing an end. The S&P 500 ended a five-day streak of
record closing highs on Thursday, while the Dow broke a two-day
streak by dipping modestly.
Still, investors expect shares to generally trend higher
given the Federal Reserve's accommodative monetary environment
and encouraging data on the labor market, including jobless
claims on Thursday and last week's payroll report.
"Between the jobs report, quantitative easing and a 0
percent interest rate policy, there's no question that there's a
floor under the market and that it wants to go up, even if some
sectors are overdone," said Chris Bertelsen, chief investment
officer of Global Financial Private Capital in Sarasota,
Boeing Co will be in focus a day after the company
said it had succeeded in getting its factories to churn out 787
Dreamliners at a faster pace this week, a change that came
sooner than expected and positions the plane maker to possibly
deliver more of the high-tech jet than forecast.
S&P 500 futures rose 3.8 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 added 64
points and Nasdaq 100 futures rose 6 points.
For the week, the Dow is up 0.7 percent, the S&P is 0.8
percent higher and the Nasdaq has gained 0.9 percent. It is the
third week of gains for all three.
Cyclical sectors closely tied to the pace of economic growth
were among the biggest gainers in the recent rally on an
improved global outlook.
"We're seeing a real rotation out of defensive names and
into groups like technology and industrials," said Bertelsen,
who helps oversee $2 billion in assets. "That's keeping the
market moving and preventing it from plateauing."
Priceline.com Inc late Thursday reported
first-quarter earnings that beat expectations, though its
second-quarter outlook disappointed.
Molycorp Inc reported a first-quarter loss that
widened from the prior year, though revenue rose sharply,
sending shares up 8.4 percent to $6.06 before the bell.
With 89 percent of the S&P 500 having reported, 66.7 percent
have topped profit expectations, above the average since 1994 of
63 percent. However, only 46.4 percent of companies have beaten
revenue expectations, well under the historical average.
Activist investor Carl Icahn and Southeastern Asset
Management proposed an alternative to a $24.4 billion buyout
deal for Dell Inc that involved giving shareholders an
option to receive either $12 a share in cash or $12 in
additional shares valued at $1.65 each.
Shares of Dell rose 0.5 percent to $13.39 in premarket
On Thursday, an extended rally for U.S. stocks came to an
end as equities dipped slightly in a volatile session and shares
of Apple Inc declined.