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US STOCKS-Futures rise ahead of private sector ADP jobs data

Published 10/06/2010, 07:14 AM
Updated 10/06/2010, 07:16 AM

* ADP report on tap, expected to show jobs added

* Crucell recommends accepting J&J buyout offer

* Costco, Yum Brands profits beat expectations

* Futures up: Dow 51 pts, S&P 3.2 pts, Nasdaq 5.25 pts

By Ryan Vlastelica

NEW YORK, Oct 6 (Reuters) - U.S. stock index futures rose on Wednesday, building on the previous session's rally, ahead of data expected to show a return to job growth in the private sector.

* Investors are expecting private employers to add 24,000 jobs in September, according to the ADP Employer Services report, which is scheduled for release at 8:15 a.m.. In August, private employers unexpectedly cut 10,000 jobs.

* The number is a precursor for Friday's closely watched non-farm payroll report, which is expected to be unchanged in September as government layoffs were offset by private hiring.

* Dow component Johnson & Johnson Inc on Wednesday said Crucell will recommend that shareholders accept J&J's $2.4 billion takeover bid for the Dutch biotech company.

* Many analysts see increased M&A activity as a sign that in using their record levels of cash, companies are becoming more confident.

* Costco Wholesale Corp posted fourth-quarter earnings that beat expectations while September same-store sales, excluding fuel, rose 4 percent.

* Late Tuesday, Yum Brands Inc reported adjusted third-quarter earnings that beat expectations and raised its full-year earnings outlook, helped by strong sales in China.

* Marriott International, Monsanto Co and Constellation Brands In are also on tap to report results on Wednesday.

* S&P 500 futures rose 3.2 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 51 points and Nasdaq 100 futures rose 5.25 points.

* Japan's Nikkei average surged 1.8 percent to close at its highest level in two months as investors continued to welcome the Bank of Japan's surprise interest rate cut the day before, while European shares were up 0.8 percent in morning trade, adding to the previous session on hopes of further monetary stimulus.

* The dollar stayed near eight-month lows on the euro and edged towards a 15-year trough on the yen on Wednesday, hurt by expectations of U.S. Federal Reserve easing after Japan lined up its own reflation tools.

* U.S. stocks rallied to near a five-month high on Tuesday on growing conviction central banks will do even more to bolster struggling economies worldwide. ( Editing by W Simon )

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