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US STOCKS-Futures flat to higher as data awaited later in week

Published 06/29/2009, 07:26 AM
Updated 06/29/2009, 07:32 AM
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NEW YORK, June 29 (Reuters) - U.S. stock futures were flat to higher on Monday as investors looked to new data later in the holiday-shortened week for clues over the direction of the recession-hit economy.

* U.S. stocks have run up as much as 40 percent since early March but have drifted recently as investors looked for signs to justify earlier optimism over an economic economy that partly drove the rally.

* "The focus will be on the economic data in this abbreviated week," said Peter Cardillo, chief market economist at Avalon Partner in New York. "What we are going to see is a market that is going to respond to the economic data, numbers that should continue to indicate improvement "

* The main focus later this week will be the June jobs report set for Thursday instead of Friday, when U.S. markets will be closed due to the U.S. Independence Day holiday.

* Other key economic data will include the Conference Board's June consumer confidence report and the Chicago Purchasing Managers Index of June business activity in the U.S. Midwest, both due Tuesday, as well as the Institute for Supply Management June reading on manufacturing set for Wednesday.

* S&P 500 futures rose 2.80 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 gained 30 points, and Nasdaq 100 futures added 6.25 points.

* Cardillo noted the market may also be affected by end-of-quarter "window dressing" as portfolio managers sell stocks with big losses and buy some of the quarter's best-performing issues to help improve their returns, a process that can add to volatility.

* With corporate earnings and economic data calendars virtually free of any market-moving events on Monday, the sentencing of confessed swindler Bernard Madoff will be in the spotlight.

* At a court hearing due to begin at 10 a.m. EDT, U.S. District Judge Denny Chin is expected by legal observers to sentence Madoff, 71, to what would effectively be a life term in prison.

* Two S&P 500 companies are scheduled to report quarterly results -- Apollo Group Inc, parent of online college University of Phoenix and tax preparer H&R Block Inc.

* European shares extended gains on Monday, led higher by energy companies, and with a stronger outlook for the euro zone economies.

* Oil futures rose 1.2 percent to $69.98 per barrel on the New York Mercantile Exchange, partially recovering from a fall at the end of last week.

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