💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

US STOCKS-Wall St set for higher open after payrolls

Published 09/03/2010, 09:16 AM
Updated 09/03/2010, 09:20 AM
GC
-

* Payrolls better-than-expected

* Futures up: Dow 95 pts, S&P 10.4 pts, Nasdaq 19.75 pts (Adds payrolls data, Walgreen sales)

By Chuck Mikolajczak

NEW YORK, Sept 3 (Reuters) - Wall Street was poised for a strong open on Friday after a better-than-expected jobs report lifted investor optimism on the economy.

Stock index futures climbed 1 percent after the Labor Department said employment fell for a third straight month in August, but the decline was far less than expected. Also, private payrolls showed more growth than forecast.

"This was a much better-than-expected report. Not only were the August numbers pretty good, but the July numbers were also revised up -- that is to say better," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

"(Economic) numbers have started to get a little better, and this is another big number in that direction. This ought to drive the market higher, given relatively light volumes."

Trading volume this week has been limp ahead of the extended U.S. Labor Day holiday weekend.

S&P 500 futures gained 10.4 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 jumped 95 points, and Nasdaq 100 futures climbed 19.75 points.

After a dismal August that saw the S&P 500 drop 4.7 percent, Wall Street started September with two consecutive winning sessions on better-than-expected data on manufacturing and housing.

Campbell Soup Co reported higher-than-expected quarterly earnings, helped by cost cuts and sales of V8 juice drinks, even as U.S. soup sales fell.

Walgreen Co said August same-store sales rose 2.1 percent, slightly below the 2.4 percent estimate.

Take-Two Interactive Inc's quarterly profit smashed past expectations, and the video gamemaker raised its forecast, citing strong sales for its "Red Dead Redemption" title. Its shares jumped 12.3 percent to $9.94 in premarket trade.

Celldex Therapeutics Inc tumbled 30 percent to $3.36 premarket after Pfizer Inc ended a codevelopment deal on Celldex's lead product, a cancer vaccine. Pfizer added 0.5 percent to $16.48.

On the M&A front, Canada's Goldcorp Inc agreed to buy gold miner Andean Resources Ltd for $3.2 billion, trumping a competing offer from rival Eldorado Gold Corp.

Other data on tap for Friday includes the Institute for Supply Management's services sector report.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.