Opening-Bell Report

Stock futures up at opening after good economic news from China.
7:30 | 01/03/12

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Transcript for Opening-Bell Report
Stock futures were -- ahead of today's opening following strong economic reports out of China. Joining me now to discuss -- the business headlines at this hour is Susanna how grant from Bloomberg TV -- and a great to see you had a good holiday. I did great to -- -- -- happy new year happy. Here's -- -- -- here on Wall Street and it's like the stock markets are often that's art. Yet -- star and which strategists are describing today's early rally as a race is back on for -- year -- to get things. We son -- -- global rally stocks rally from -- -- year up. We're picking up the torch right now here in the -- last off to a strong start. And so far the economic data we're getting globally seems to be pretty get. All right so let's get into that let's talk about the consumer spending outlook for 2012 spending was up over the holiday season -- we expect this trend to continue winning here. Well it's just keeping silence -- economists up providing -- -- -- get get economic data. In particular unemployment will get the latest check on that at the end of the week if unemployment continues to come down like we sell last month. That will encourage consumers perhaps spend a little bit more -- -- -- Stephanie we have to watch out because there are some. Forces at work here that could become problematic. IE the price of oil is rising fuel costs Google up when we typically see oil prices trade where they are now at a basically a 101 dollars a barrel. That -- that the consumer a little so that's one -- economists are paying attention to you when they look at the consumer. And it goods spending says and does get shaking how does that impact the overall economic outlook in 2012. -- -- consumer is you know 90% of the US economy so it does happen very very big impact but. What we're hearing and what we've been learning with economic reports out right through the end of last year perhaps today will we get the latest. Data points at ten and -- things are improving manufacturing standing batter all of these signs combined are very good news for the US economy and economists are pretty encouraged what economy can -- But let's not forget Europe didn't go anywhere over the nearest holiday -- the Christmas holiday and European leaders are still battling. That getting your debt crisis under control and particularly in the three months. 2012 this year they had AL large amount -- debt. Coming dealing not something that can actually just -- -- stopped at the end of last year really rocked the markets and consumer sentiment. Sure OK well speaking of manufacturing institute for supply management is releasing its December report today. Are we anticipating good news we are actually anything over fifty signals expansion. So that's get news and economists we track expecting a reading at about 53 this actually -- -- the best. December in about six months and that's very -- -- In -- that number come in as expected or even a little bit better LB very encouraging for the markets that will likely keep the stock rally we're seeing right now under -- Manufacturing very key -- -- that can see a trend that we've seen over the past couple of months. And economists are very bullish on this particular data plane okay investors will also been looking at the minutes from the Federal Reserve's meeting later today what are you looking for. Yet in need -- is expected from the -- but what we like sixty year and look for when -- -- here. About. These minutes is what me come in 2012 from the fat and we're hearing. Federal Reserve policy makers and improve their communication skills with investors and -- street and that's very important because the market looks for any classes. Asked what the Fed needs you. Will they come out with another round of stimulus IE QE3 we'll be looking for more communication -- we -- get -- -- Preview. Today 18 PM -- me get this data points and that of course will be give us something to look forward to when the Fed needs at the end of the month it I want to mention about manufacturing. It may -- is expected to be very strong at 10 am also because auditors had -- on a terrace mountain yet industry on a tremendous. Recovery that's expected to continue at 2012 and we'll hear from the out maker Stephanie tomorrow we'll find out -- December really was if anyone out there got a new car -- -- you deftly held back. Who -- manufacturing number and certainly -- folks are buying new cars. Aren't -- you spoke earlier about the price of oil that's on the rise again today where we currently -- -- price and why. -- -- 101 -- barrel oil -- nearly three dollars today part of it's because we did get around the globe did manufacturing numbers in particular from China. That actually got -- going but also let's not forget about Iran we continue to cover the developments there -- the tensions. Between the White House and the rest of European leaders as well also hearing the European leaders the EU in particular. Me impose some type of additional sanctions with. Iran perhaps at the end of the month. That's something -- are going to be watching on the talk commodity strategist they think a -- -- will be front and center for the oil market for the first half of this year so that's likely going to keep. The price of oil LL the elevated perhaps to where we are now now -- seat if it impacts. Prices at the pump again if we start to see that. That could actually be negative news for the consumer news enjoyed a decline -- gas prices -- over the past couple weeks and the economy on a whole. -- switch -- -- you -- say keep an -- on Starbucks because they're gonna start raising their prices what's going on that's straight out supporting us today -- certainly really intercede on Starbucks. Typically -- test various markets and see where they need to raise prices and we are hearing according to the company that they will institute a price increase -- about 1% in the northeast and that's right here in New York. Abbas and also in the Sunbelt area. Perhaps Dallas and what they're worried about is as you mentioned fuel prices -- they're worried about commodity prices and that's gonna potentially impact profits at Starbucks -- What they're -- is increasing prices on certain drinks not all for example tall lots they are brewed -- -- up about ten cents this. This is -- way they can sort of offset higher commodity costs certainly don't see prices go up I don't wanna pay more for -- a couple -- in the morning but this is something that the companies likely is going to insist she SEC has seems like prices for everything are going to cut fees are high I thought the same thing you mean and we need a break. Yeah I don't think it's our imagination an outlet and let's look at the Dow right now seems like a real rally here on the first working day of the new year and the Dow up by 206. -- -- writing this mainly today. Well you know I think -- investors -- everybody globally is. Back to work up presumably this week so we are seen asks investors' focus on the positive we a couple of stocks that we're keeping and I -- -- for example -- S. They make memory chips the company boosted its fourth quarter forecast. Boston hearing positive news from a number of technology companies that consumer electronics -- is basically a week from today. But we're also hearing companies that are already rather we're hearing companies like Intel and counselor in the coming out with some new in -- the hot products. That's getting a market selling but really camel we have on -- At once strategist described as -- -- -- and -- investors coming back taking advantage basically stocks that did not being. Last year. Even now we had at -- easy headline driven market the S&P and it essentially flat for now investors a little bit more confident coming back into the market but you know what's important day Stephanie -- -- Let's see if the early rally holds through the end of -- -- if it does and that can give you a sense that. People are just treating this markets are not investing for the long term that's something we'll be watching today as -- -- access. Suzanne -- how -- grant from Bloomberg TV great to see if -- so much and happy new year. If you.

This transcript has been automatically generated and may not be 100% accurate.

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