* Oracle, RIMM jump in premarket after results
* Key 1,130 level for S&P 500 could be tested
* Futures up: S&P 3.8 pts, Dow 40 pts, Nasdaq 5.75 pts
* For up-to-the-minute market news see []
(Writes through, adds details, quote, byline)
By Leah Schnurr
NEW YORK, Sept 17 (Reuters) - U.S. stock index futures rose
on Friday as solid reports from technology bellwethers Oracle
and Research In Motion put the S&P 500 on track to test a key
level that has stymied investors for months.
The world's No. 3 software maker Oracle Corp <ORCL.O>
jumped 4.2 percent to $26.43, while BlackBerry maker Research
In Motion Ltd <RIM.TO><RIMM.O> surged 5.1 percent at $48.85 in
premarket trading. Both recorded better-than-expected results
late Thursday and gave outlooks that topped expectations. For
details, see [] []
Futures indicated stocks were poised to rise 0.5 percent at
the open, which could lift the S&P 500 just above the
much-watched technical level of 1,130. That point has proved to
tough to break through since June, and a push above there could
be a bullish sign.
"It's very important that we continue that through the day
and go higher because if we stall out during the day at these
levels, that might mean we won't have a breakout," said
Paul Mendelsohn, chief investment strategist at Windham
Financial Services in Charlotte, Vermont.
The last time the S&P rose above 1,130 was in late June on
an intraday basis, but it failed to close there. It also proved
a resistance point in August, when the index climbed to around
1,127.
Chartists are looking for a decisive move higher, with that
level representing the neckline of an inverse
head-and-shoulders formation. Moving above it opens the door
for the index to test its 2010 high near 1,220.
On the economic front, the August Consumer Price Index is
due at 8:30 a.m. EDT (1230 GMT). Economists in a Reuters survey
expect a 0.2 percent increase, compared with a 0.3 percent rise
in July. Preliminary September consumer sentiment will be
released at 9:55 a.m. EDT (1355 GMT), with a reading of 70.0
expected compared with 68.9 in the final August report.
[]
S&P 500 futures <SPc1> rose 1.5 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 <DJc2> added 17
points, and Nasdaq 100 futures <NDc1> gained 6.25 points. Wall
Street was little changed on Thursday.
Texas Instruments Inc <TXN.N> shares rose 3 percent to
$25.72 as the chipmaker increased its stock repurchase program
and boosted its quarterly dividend by 8 percent.
[]
In mergers and acquisition news, Johnson & Johnson <JNJ.N>
said it is in talks to buy Dutch biotech Crucell NV <CRCL.AS>
for 1.75 billion euros ($2.3 billion). []
Friday marks the second day of "quadruple witching," or the
quarterly settlement and expiration of four different types of
September equity futures and options contracts that expire
later in the day.
Expiration usually leads to greater volume and volatility
as traders adjust or exercise their derivatives positions. But
the two-day event, which only happens four times a year in
March, June, September and December, could stir up more sudden
swings in the market as traders close hedging positions or roll
them over at the last minute.
(Reporting by Leah Schnurr; additional reporting by Angela
Moon; editing by Jeffrey Benkoe)
