Wednesday, Feb 29, 2012

By Barbara Kollmeyer

U.S. stock market futures traded slightly higher on Wednesday, with action choppy after the results of the European Central Bank's refinancing operation for regional banks, while investors waited to see if the Dow industrials can keep a grip on 13,000.

On the last trading day of the month, futures on the Dow Jones Industrial Average rose 5 points to 13002. S&P 500 index futures gained 1.5 points, or 0.1%, to 1372.90. Nasdaq 100 futures added 2 points to 2634.

Markets wobbled across the board after the ECB said it allotted EUR529 billion ($713.4 billion) in its second auction of three-year loans to the banking sector. The number was higher than some expectations, which varied.

The Stoxx Europe 600 index rose 0.4% to 265.33, with gains led by the banking sector.

Meanwhile, Wall Street was due to get particularly close attention after the first close above 13000 for the Dow Jones Industrial Average since May 2008 on Tuesday. The index finished up 23.61 points, or 0.2%, to 13005.12, boosted by upbeat consumer confidence numbers and falling oil prices.

The S&P 500 index rose for a fourth day, its longest winning streak since one that ended Jan. 23.

Crude-oil futures for April delivery rose 47 cents, or 0.4% to $107.02 a barrel, ticking higher as the dollar edged lower. The dollar index traded at 78.212, slightly off from 72.222 late Tuesday.

Among other commodities, gold for April delivery weakened in the wake of the ECB's long-term refinancing operation results. Gold fell $3.30 to $1,785.10 an ounce.

Data for Wednesday includes a revision of fourth-quarter gross domestic product, due at 8:30 a.m., EST, the Chicago purchasing managers index at 9:45 a.m., EST, as well as the latest Beige Book from the Federal Reserve later in the day.

Among other highlights, Fed Chairman Ben Bernanke will testify before the House Financial Services Committee at 10 a.m., EST.

On the corporate side, Costco Wholesale Corp. (COST) reported its fiscal second-quarter earnings rose 13% with better-than-expected revenue growth and strong same store sales growth.

A handful of companies are due to report earnings before the bell, including Joy Global Inc. (JOY) and Staples Inc. (SPLS).

Shares of Dreamworks Animation SKG Inc. (DWA) could be in focus. The stock fell in after-hours trading on Tuesday after the animation studio posted a 71% drop in fourth-quarter profit compared to the year-ago period. Earnings of 29 cents per share fell short of analysts forecasts.

Shares of First Solar Inc. (FSLR) could come under pressure in pre-market trading after the maker of solar modules cut its 2012 earnings and sales forecasts.

Most Asia stocks closed out February with solid gains, except in China, where the Shanghai Composite Index closed down 1%.

-By Barbara Kollmeyer; 34 91 395 8131; AskNewswires@dowjones.com

(END) Dow Jones Newswires

February 29, 2012 06:21 ET (11:21 GMT)