U.S. futures edge higher, jobs data still supports; Dow Jones up 0.05%
Published May 06, 2013 06:49AM ET
Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.05% gain, S&P 500 futures signaled a 0.03% rise, while the Nasdaq 100 futures indicated a 0.16% increase.
Stocks remained supported after data on Friday showed that the U.S. economy added 165,000 jobs in April, above expectations for an increase of 145,000, while job increases for the previous month were revised up to 138,000.
The U.S. unemployment rate unexpectedly fell to a four-month low of 7.5% from 7.6% in March.
But investors remained cautious after the European Commission revised down euro zone growth forecasts on Friday, saying it now expects the bloc’s economy to contract by 0.4% this year, more than the 0.3% decline it predicted previously.
Auto stocks were expected to be active, after General Motors said it is planning to invest about USD16 billion on U.S. factories and facilities through 2016, more than it will spend in China.
Software companies were also likely to be in focus, amid reports BMC Software is in advanced talks to be taken private by Bain Capital LLC and Golden Gate Capital for less than USD48 a share.
The news sent shares in the company surging 3.48% in pre-market trade.
In the tech sector, Apple shares added 0.21% in early trading as the iPhone maker reportedly avoided as much as USD9.2 billion in taxes by financing part of a USD55 billion stock buyback with debt rather than offshore cash that would have been billed by the U.S. government.
Elsewhere, JP Morgan was expected to name an independent chairman and oust three directors, adding pressure on the U.S. lender to overhaul its corporate governance after a USD6.2 billion trading loss.
Across the Atlantic, European stock markets were lower. The EURO STOXX 50 declined 0.44%, France’s CAC 40 slid 0.31%, Germany's DAX edged down 0.12%, while Britain's FTSE 100 remained closed for a national holiday.
During the Asian trading session, Hong Kong's Hang Seng Index jumped 0.99%, while Japan’s Nikkei 225 Index was closed for a national holiday.
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Written By: Investing.com
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