Higher open projected after strong GDP report

Small-cap stocks are expected to open higher, boosted by an upside surprise on economic growth for the second quarter, which will help investors once again look beyond another surge in crude oil prices. The Russell 2000 (NYSE:IWM) pushed from flat to up about 0.4% after the data, which suggests an opening near 735.50.

GDP was pegged at plus 3.3% for the second quarter, well clear of the 2.7% forecast, boosted by strong exports, which were up 13.2%. At the same time that GDP numbers came out, the market also received data on weekly unemployment claims, which met the forecast at 425,000.

The immediate market response to the numbers was a five-handle upside rise in S&P 500 futures, which moved from slightly lower territory to higher ground. In addition, the dollar firmed from down 0.2% against the euro and yen to near unchanged levels. Perhaps the biggest move was seen in Treasury markets, with bonds and notes sinking in response to the stronger-than-expected GDP number.

Crude oil futures continued to push higher overnight, climbing toward $120 dollars a barrel amid concerns about the path of Tropical Storm Gustav, which could threaten energy production in the Gulf of Mexico. Although the weather system was downgraded to a tropical storm, it is expected to regain hurricane status soon and appears to be trekking toward key crude oil and natural gas areas in the Gulf.

Stocks on the radar screen overnight included Sears Holdings Corp. (Nasdaq:SHLD), which was down about 1.3% after quarterly profits missed the forecast . . .

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