stocks poised to get a lift from strong sales and Wall Street...

stocks poised to get a lift from strong sales and Wall Street feeling chipper

Stocks poised to get a lift from strong sales and earnings forecast from chipmaker Texas Instruments.
June 9, 2006: 6:23 AM EDT


NEW YORK (CNNMoney.com) - Stocks could get a lift after a strong forecast from Texas Instruments, the No. 1 maker of semiconductors used in cell phones.

U.S. stock futures were up in early trading, indicating a higher open for U.S. markets, after blue chip indexes posted a late-day rally Thursday to end a tough day in positive territory.

After the market close Thursday Texas Instruments (Research) raised its guidance for sales and earnings during its mid-quarter update for investors. Shares of TI gained 3 percent in after-hours trading, and shares of chipmakers such as Intel (Research) and Advance Micro Devices (Research) as well as chip equipment maker Applied Materials (Research) rallied in Frankfurt trading early Friday.

Major markets closed higher in Asia on the stronger chip outlook, while major European markets also were higher in early trading, with tech stocks leading the rally there.

Oil prices were slightly higher in early trading.

The July light crude futures contract for NYMEX was up 32 cents to $70.67 in electronic trading, while the July contract for Brent crude gained 52 cents to $69.57.

Oil prices were likely to be a contributing factor in the U.S. trade gap report due at 8:30 a.m. ET from the Commerce Department. Economists surveyed by Briefing.com forecast that U.S. imports outstripped exports by $65 billion in April, up from a $62 billion gap in March.

Also due at 8:30 a.m. is a report on import and export prices, which could get particular attention at this time when markets are on inflation watch for clues to the future of interest rate actions from the Federal Reserve. Fed watchers in the market will also be listening to a speech Fed Chairman Ben Bernanke is due to give at the commencement address at the Massachusetts Institute of Technology, where he earned his PhD. The ceremony is due to start at 10 a.m. ET.

Treasury prices were higher, trimming the yield on the benchmark 10-year note to 4.98 percent from the 4.99 percent level reached late Thursday. The dollar was lower against the yen and the euro.