Futures extend gains on consumer spending data
NEW YORK — Stock futures are extending their gains following a report showing a smaller-than-expected dip in consumer spending.
The government says consumers trimmed their spending in April by 0.1 percent, slightly less than the 0.2 percent reduction forecast by economists. Meanwhile, wages and salaries were flat in April. Personal income was expected to decline by 0.2 percent.
Stock futures had been higher ahead of the report on upbeat data on manufacturing activity overseas.
The gains came even as General Motors filed for bankruptcy protection, as expected.
Dow Jones industrial average futures are up 118 to 8,606. Standard & Poor’s 500 index futures are up 16 to 934, and Nasdaq 100 index futures are up 12 to 1,447.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
NEW YORK (AP) — U.S. stock futures pointed higher Monday as data on the manufacturing industry added to hopes that the global economy may soon recover.
Investors looked to extend the market’s rally into a fourth month, taking a cue from overseas markets, which surged following surveys in Europe and Asia that showed the manufacturing sector is healing. Investors are awaiting a similar survey on the U.S. manufacturing industry later Monday morning.
Analysts expect the Institute for Supply Management to report that its purchasing managers’ index rose to 42.0 in May from 40.1 in April. Anything below 50 indicates contraction, but the reports in Europe and Asia are fueling hopes of an even bigger increase than analysts are forecasting.
The gains came despite General Motors Corp.’s impending filing for bankruptcy protection.
The move, which has been highly anticipated, will give the government a 60 percent stake in the ailing automaker. The government is expected to provide GM with an additional $30 billion, on top of $20 billion in government loans GM has already received, to help it restructure. Meanwhile, rival Chrysler LLC, which filed for Chapter 11 protection in April, is expected to emerge from bankruptcy protection this week.
Investors will also look to reports from the Commerce Department on personal income and spending, as well as construction spending, for April later Monday morning.
Ahead of the market’s open, Dow Jones industrial average futures rose 98, or 1.2 percent, to 8,586. Standard & Poor’s 500 index futures rose 12.40, or 1.4 percent, to 930.50, while Nasdaq 100 index futures gained 16, or 1.1 percent, to 1,451.50.
Overseas, Japan’s Nikkei stock average jumped 1.6 percent, while Hong Kong’s Hang Seng index soared 4.0 percent. In European trading, Britain’s FTSE 100 was up 1.4 percent in afternoon trading, while Germany’s DAX index rose 3.0 percent and France’s CAC-40 gained 2.0 percent.
Stocks have wavered in the past few weeks as investors question the sustainability of the market’s stunning three-month advance; Since March 9, the Dow is up 29.8 percent, the S&P 500 index is up 35.9 percent and the Nasdaq is higher by 39.9 percent. The gains have been fueled in large part by data showing a moderation in the economy’s slide.
On Friday, Wall Street secured the third month of its spring rally with all the major indexes rising at least 1.2 percent on a mix of economic data and soaring commodity prices.
Despite the recent gains, the market is still well off its October 2007 peak. The recession has cut into the Dow by 40 percent since then.
Investors are well aware that the stock market tends to turn around before the economy does. But analysts have warned that the market’s surge may have been too big too quick and that some pullback is necessary for a healthy march higher.
New worries have also begun to seep into the market, including a sinking dollar and climbing interest rates. Investors fear such developments could threaten the economy’s recovery.
Analysts expect the market to remain volatile as investors in need of reassurance to keep buying search for more concrete signs that the economy is improving.
More readings on the housing and labor market this week — two crucial areas of the economy that the market has been closely watching — will largely determine which way Wall Street moves. Earnings reports from major homebuilders, data on pending home sales and the highly anticipated jobs report for May are all on tap this week.
Government bonds fell early Monday, pushing yields higher. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.54 percent from 3.46 percent late Friday.
The dollar was mixed against other major currencies, while gold prices rose.
Light, sweet crude jumped $1.57 to $67.88.
Related News
Summary Box: Jobs, manufacturing data show recovery off to bumpy start; modest rebound likelyOctober 1st, 2009 Summary Box: Jobs, manufacturing data disappointCONSUMERS: Consumer spending surged 1.3 percent in August, due partly to the now-ended Cash for Clunkers program. But incomes posted a lackluster 0.2 percent gain, and the number of newly laid-off workers rose more than expected to 551,000 last week.
Stock futures point to a lower open as investors await housing, consumer dataSeptember 30th, 2009 Stock futures retreat ahead housing, consumer dataThe stock market headed for a modestly lower open Tuesday as investors await the latest reading on consumer confidence. Stock futures fell slightly, a pullback to be expected after the market shot higher Monday and propelled the Dow Jones industrials up more than 120 points.
European shares drop, Wall Street seen sliding on open on worries stocks are overvaluedSeptember 1st, 2009 European stocks down ahead of expected US lossesLONDON — European markets dropped Tuesday and Wall Street futures pointed lower as investors worried stocks are overvalued and that an economic recovery will be only gradual. In Germany, the DAX fell 74.12 points, or 1.4 percent, at 5,390.49, while Britain's FTSE 100 dropped 58.28 points, or 1.2 percent, to 4,850.62.
Stocks open modestly higher as investors look to build on market's recent momentumAugust 24th, 2009 Stocks open higher, investors build on momentumNEW YORK — Investors are building on last week's momentum that sent major indexes to their highest levels of the year, pushing stocks higher in early trading. The moderate advance Monday follows gains in overseas markets.
Consumers, not Fed policy makers, hold the keys to future of Wall Street's big rallyAugust 16th, 2009 Wall Street sees shoppers as key to rally's futureNEW YORK — On Wall Street, the average shopper can trump a Federal Reserve policy maker. With other parts of the economy showing signs of improvement, the question of when a recovery will occur and how strong it will be lies with consumers.
Weak dollar, improving data on housing, consumer spending send commodity prices higherAugust 4th, 2009 Weak dollar, upbeat data support commoditiesNEW YORK — A weak dollar and more upbeat data on the economy is making a strong case for buying precious and industrial metals. Commodity prices are higher for a fourth day in a row as the National Association of Realtors says pending home sales rose in June by more than analysts had expected.
Stocks adance modestly as investors look to hold gains, await data on pending home salesJune 2nd, 2009 Wall Street rises modestly a day after surgeNEW YORK — Investors are gently adding to their gains a day after rushing into the stock market. Stocks rose modestly early Tuesday as investors showed optimism but also a little caution after Monday's huge gains that followed a series of upbeat economic readings.
Wall Street extends gains after upbeat data on construction spending, US manufacturingJune 1st, 2009 Stocks extend gains after more positive dataNEW YORK — Stocks are extending their gains on news that construction spending and manufacturing activity are improving. The major indexes are up more than 2 percent after the Commerce Department said construction spending jumped 0.8 percent in April.
Wall Street rise in early trading on upbeat data on consumer spending, manufacturing dataJune 1st, 2009 Stocks open higher on more signs of recoveryNEW YORK — Stocks are starting June with a gain, as upbeat data on overseas manufacturing and U.S. consumer spending added to hopes for a global economic recovery.
Wall Street rises in morning trading on upbeat data on consumer spending, manufacturingJune 1st, 2009 Stocks rise sharply on more signs of recoveryNEW YORK — Stocks are starting June with a gain, as upbeat data on overseas manufacturing and U.S. consumer spending added to hopes for a global economic recovery.
Wall Street appears headed higher as overseas markets advance on strong manufacturing dataJune 1st, 2009 US stock futures rise following overseas gainsNEW YORK — U.S. stock futures pointed higher Monday as data on the manufacturing industry added to hopes that the global economy may soon recover.
Wall Street appears headed for higher open on upbeat data on consumer spending, manufacturingJune 1st, 2009 Futures point higher on more signs of recoveryNEW YORK — Stock futures pointed to a higher open Monday as upbeat data on overseas manufacturing activity and U.S. consumer spending added to hopes that the global economy may soon recover.
Gold prices little changed as rally on Wall Street dampens investment demandMay 9th, 2009 Gold prices hold steady as Wall Street ralliesNEW YORK — Gold prices are holding steady as a rally in stocks keeps demand for the safe-haven asset in check. Other commodities, like oil and grains, are surging on the day's upbeat economic data.
Stock futures edge higher after big gains, investors await economic data, earnings reportsMay 5th, 2009 Wall Street appears ready to extend big gainsNEW YORK — U.S. stock futures are edging higher as investors await a reading on the services sector and a bevy of earnings reports for further confirmation that the economy is improving.
Wall Street set for modest gain as investors await reading on manufacturing activityMay 1st, 2009 US stock futures edge up before manufacturing dataNEW YORK — Stocks are set for a modest gain ahead of a key reading on U.S. manufacturing.
Loading ...