US stock index future edged higher on Wednesday as traders looked to extend fours days of gains that drove the S&P 500 to levels reached just before Lehman Brothers went bankrupt two years ago. Despite technical indicators pointing to an overbought market after the S&P 500 climbed over 6 percent this month, interest from institutional investors could sustain a thinly traded market through the holiday period.
In premarket trading, materials and banking stocks, sectors that have helped lead the recent rally, were stronger. Bank of American Corp rose 0.8 percent to $13.08, while Alcoa Inc rose 0.5 percent to $14.97. S&P 500 futures rose 0.1 point 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 rose 4 points, while Nasdaq 100 futures fell 1.5 points. The S&P 500 is within striking distance of 1,255.08, a level seen before the Lehman collapse in September 2008 and an important psychological barrier for investors.
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