Higher open on tap on crude dip, durable good surprise

Small-cap stocks are expected to open higher, underpinned by a decline in crude oil prices during overnight trading and a stronger-than-expected showing on durable goods orders. The Russell 2000 (NYSE:IWM) was up about 0.3% in after-hours action, which would translate to a cash opening near 736.

The durable goods report came in at minus 0.5%, better than the forecast for a loss of 1%. In addition, the ex-transportation component was up 2.5%, well above the median analyst expectation for a rise of 0.5%. The ex-trans figure was the best showing since last July. In the immediate aftermath of the report, stock index futures products extended overnight gains. The MBA Mortgage Application survey also came out this morning, and reflected slack demand, with the index down 4.6% and the purchase index off 17.4%. This is a volatile data base and appeared to be overshadowed by the durables surprise.

Large-cap stocks of note overnight included UPS (NYSE:UPS), which was up about 2.8% on an analyst upgrade. In addition, Southwestern Energy (NYSE:SWN) was expected to climb after being named to move into the S&P 500. On the downside, JetBlue Airways Corp. (Nasdaq:JBLU) was off about 1% as the company said . . .

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