By Saumya Vaishampayan
U.S. stocks were poised for a slightly higher open Monday,
boosted by gains in European and Chinese shares.
S&P 500 futures advanced six points, or 0.3%, to 2108.
E-mini Dow futures gained 66 points, or 0.4%, to 18000. E-mini
Nasdaq-100 futures added 12 points, or 0.3%, to 4479. Changes in
stock futures don't always accurately predict moves in the stock
market after the opening bell.
Action in the U.S. stock market has been choppy this year, as
investors grapple with evidence of an economic slowdown at the
start of the year, the strong dollar's drag on earnings and the
possibility of higher interest rates. The Dow fell in January,
rallied in February, pulled back in March and eked out a gain in
April. For the year, the blue-chip index has gained 1.1%. The
S&P has advanced 2.4% and the Nasdaq Composite is up 5.7%.
"We've been just waffling back and forth," said Chris Gaffney,
president of EverBank World Markets.
Stocks rose Friday, but logged weekly losses in part due to soft
economic data. The Dow gained 1% on Friday to 18024.06 and the
S&P 500 added 1.1% to 2108.29.
Gains in European and Chinese stocks added to Monday's positive
tone.
European stocks advanced after data showed the eurozone's
manufacturing sector expanded in April, though at a slightly slower
pace than in March. Germany's DAX gained 1.6% and France's CAC 40
rose 1.3%.
Data showing a slowdown in Chinese manufacturing activity in
April suggested Beijing may need to take further steps to bolster
the economy, boosting stocks. The Shanghai Composite Index rose
0.9%.
U.S. economic reports this week will culminate with Friday's
employment report, which is expected to show employers added
220,000 jobs last month as the unemployment rate ticked down to
5.4% from 5.5%. On Monday, factory orders are expected to rise 1.9%
in March, according to economists surveyed by The Wall Street
Journal.
In commodity markets, gold futures rose 0.5% to $1180.20 an
ounce. Crude-oil futures gained 0.6% to $59.52 a barrel.
The yield on the 10-year Treasury note inched up to 2.130% from
2.119% on Friday. Yields rise as prices fall.
Investors also continued to watch first-quarter earnings.
Comcast Corp. reported better-than-expected profit and revenue
growth in its first quarter, as its broadband division posted its
strongest revenue growth in more than four years. The company also
announced it will spend another $2.5 billion buying back shares
this year. Shares rose 1.4% premarket.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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