Stock Futures See Strong June Start on China Manufacturing Growth
NEW YORK (TheStreet) -- U.S. stock futures were posting a strong start to June, extending momentum after a May which saw record highs set for both the Dow Jones Industrial Average and S&P 500. Boosting sentiment, strong data out of China indicated the second-largest economy in the world is recovering from recent sluggishness.
Dow futures were up 14 points, or 13.83 points above fair value, to 16,718, while Nasdaq futures added 1.50 points, or 1.53 points above fair value, to 3,737. S&P 500 futures were edging higher 0.75 points, or 0.78 points above fair value, to 1,922.25.
- After concerns China was set for a slowdown, the nation reported manufacturing activity in May climbed to 50.8 from 50.4 a month earlier, while new orders jumped to 52.3 from 51.2. The strong results showed Chinese manufacturing expansion at its fastest rate since the beginning of the year.
- Asia-Pacific markets moved higher with the Nikkei up 2.07% and Hang Seng gaining 0.31%. European markets were all in the green with the FTSE adding 0.32%, DAX up 0.22% and CAC 40 edging just 0.01% higher.
- In premarket trading, Broadcom (BRCM) was spiking 12.3% on news it is exploring a potential sale of its cellular baseband segment, a move which could result in cost savings as much as $700 million.
- Ariad Pharmaceuticals (ARIA) was up 10.4% after releasing positive recent trial results for its drug Iclusig, a leukemia drug suspended by the FDA last year on concerns it contributed to blood clotting.
- Conn's (CONN) was popping 11.2% after recording earnings of 80 cents a share, 7 cents higher than analyst averages compiled by Thomson Reuters.
- Stocks to watch after the bell include Krispy Kreme (KKD), which is expected to post net income of 23 cents a share, Quicksilver (ZQK) , which is forecast to post a loss of 8 cents a share, and Guidewire Software (GWRE) is expected to report quarterly profit of 3 cents.
- On the economic calendar, the ISM index for May and construction spending for April are due for release at 10 a.m. EDT. Economists expects the ISM index to move to 56.2 from 55.4 a month earlier, while construction spending is expected to increase 0.6%.
- U.S. markets closed mixed on Friday with the Dow and S&P 500 higher and the Nasdaq slightly lower. Weaker-than-expected consumer spending, a measure monitoring 70% of total economic activity, weighed down stocks and contributed to Wall Street skittishness. Even so, the S&P 500 closed historically weak May at an all-time high, adding 2.1%.
-- Written by Keris Alison Lahiff in New York.
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