15 July 2005, 17:11  Stock futures turn higher after economic data

Stock market futures turned positive Friday after yet another indication of both an improving economy and low inflation, despite a tepid response to General Electric's in-line second-quarter earnings. U.S. producer prices were unchanged in June despite higher energy prices, the Labor Department reported Friday. The core rate of inflation at the wholesale level fell 0.2%, the agency said. Economists had expected the producer price index to rise 0.4% in June. Core inflation was expected to rise 0.2%. Manufacturing activity in the New York area continued to rebound in July, the New York Federal Reserve Bank said Friday. The bank's Empire State Manufacturing index rose to 23.9 in July from a revised 10.5 in June. The index continues to climb after hitting a two-year low of -11.1 in May. Economists had anticipated a flat reading of the index. S&P 500 futures rose 0.8 of a point and Nasdaq 100 futures added 1 point; both indicators were lower ahead of the data. The S&P 500 closed Thursday at a four-year high, and the Nasdaq Composite ended at a 2005 high. GE as expected posted second-quarter earnings of 44 cents a share on revenue of $41.6 billion. GE did lift the low end of 2005 earnings guidance, now seeing an EPS of $1.80 to $1.83 for the year; brokers have been expecting an EPS of $1.82. GE shares edged 28 cents lower to $35.35 in pre-open trade. Crude-oil prices rose 61 cents to $58.41 a barrel in electronic trade. In overseas stock-market trading, mobile phone makers Samsung and Sony Ericsson both forecasted rising handset sales, though both also reported quarterly profit declines.

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