MENU

Dow Futures Surge Ahead of Jobs Report

LONDON — Stock index futures at 6.30am ET indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI) may open up by 0.70% this morning, while the S&P 500 (SNPINDEX: ^GSPC) may open 0.75% higher.

European markets moved made gains this morning as strong economic data and earnings reports helped boost sentiment ahead of the latest monetary policy announcements from the Bank of England and the European Central Bank, both of which are due before US markets open. The latest eurozone manufacturing PMI rose to 50.3 in July, up from an initial reading of 50.1, while in China, the official manufacturing index rose to 50.3, beating consensus forecasts for a reading of 49.8. At 6.30am ET, the FTSE 100 was up 0.34%, the DAX was up 1.11%, and the CAC 40 was up 0.43%.

In the US, today’s jobless claims report is likely to be in focus ahead of tomorrow’s nonfarm payrolls. The initial jobless claims report is due at 8.30am ET and is expected to show that 345,000 new claims were made last week, up from 343,000 the previous week. At 9am, the Markit Purchasing Managers’ Index for July is due, followed at 10am by the Institute of Supply Management’s monthly manufacturing index, which is expected to rise to 52, up from 50.9 in June. Also at 10am, construction spending is expected to have risen by 0.4% in June, after gaining 0.5% in May.

Earlier this morning, Time Warner Cable reported revenue of $5.6bn and adjusted earnings of $1.64 per share for the second quarter, up from $1.43 for the same period last year. The firm said that increased demand for high-speed data services was behind the gain. Other big corporate names due to report quarterly earnings before the opening bell today include Exxon Mobil and Proctor & Gamble, along with DirecTV, Cigna, Beckton Dickinson, ConocoPhillips, Kellogg, Chesapeake Energy and Avon Products. Companies due to report after markets close tonight include American International Group and LinkedIn.

Yelp stock may be actively traded when markets open today, after the firm’s stock rose by 8.9% in pre-market trading this morning following last night’s news that the firm halved its quarterly loss during the second quarter, thanks to sales of $55m, up from $32.7m during the same period last year. DreamWorks may also rise after it reported a 75% rise in profits during the last quarter.

Finally, let’s not forget the Dow’s daily movements can add up to some serious long-term gains. Indeed, Warren Buffett recently wrote: “The Dow advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions.” If you, like Buffett, are convinced about the long-term power of the Dow, you should read “5 Stocks To Retire On“. Your long-term wealth could be transformed, even in this uncertain economy. Simply click here now to download this free, no-obligation report.

> Roland does not own shares in any of the companies mentioned in this article.