MW: US Stock Futures Pointed Higher After Income, Spending Data
By Steven Russolillo
NEW YORK (MarketWatch) -- U.S. stock futures rose Friday morning after positive personal income and spending data as investors appear ready to kick off the new quarter on a positive tone.
Dow Jones Industrial Average futures were recently up 49 points at 10772, while Standard & Poor's 500-share futures gained 6 at 1143 and Nasdaq 100 futures were up 15 at 2010. Futures were essentially unchanged compared with before the data were released. Changes in futures do not always accurately predict stock moves after the market's open.
The Commerce Department said consumer spending rose 0.4% in August after rising the same amount in July. Incomes, meantime, increased by 0.5% in August after a 0.2% rise in July. The numbers were slightly better than expected. Economists surveyed by Dow Jones Newswires had forecast spending and income would both climb by 0.3% in August.
Investors look set to extend the gains experienced last quarter. Benchmark indexes surged in the third quarter. The Dow gained 7.7% last month, marking its best September performance since 1939 and rallied 10.4% overall in the third quarter.
While that was good news for stock investors, the rally served only to reverse losses suffered during the second quarter. The Dow finished September 70 points shy of where it stood six months earlier and is up just 3.5% for the year.
Asian stocks finished mostly higher overnight, underpinned by data showing an acceleration in China's manufacturing activity. The official Chinese purchasing managers' index rose to 53.8 in September from 51.7 the previous month.
Market watchers will be focused on the Institute for Supply Management's manufacturing index for September, due for release at 10 a.m. EDT. Analysts are expecting a slight decline from a month earlier.
December gold futures rose, but recently stood just below its recent record. Oil futures gained, while the U.S. dollar fell against other major currencies. The euro was recently trading at $1.3762, up from $1.3632 late Thursday in New York. Crude-oil prices rose.
