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US STOCKS-Futures advance as U.S. says bin Laden killed

Published 05/02/2011, 07:14 AM
Updated 05/02/2011, 07:16 AM
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* Bin Laden death seen reducing geopolitical risks

* Crude oil falls, dollar ticks higher

* More corporate earnings, ISM manufacturing data on tap

* Indexes up: Dow 72 pts, S&P 6.5 pts, Nasdaq 12.25 pts

By Ryan Vlastelica

NEW YORK, May 2 (Reuters) - U.S. stock index futures advanced on Monday following confirmation that Al Qaeda leader Osama bin Laden was killed by a U.S.-led operation in Pakistan.

* The dollar edged higher while crude oil dropped 1.7 percent, reflecting a perception that geopolitical risks would ease after the death of the mastermind behind the Sept. 11, 2001 attacks on the United States.

* Tensions in the Middle East and North Africa have served as market headwinds in recent months as unrest in oil-producing countries sparked concerns about the risk to supplies and the global economy.

* The bin Laden news came as the Dow and Nasdaq recorded their best month since December in April. Major U.S. indexes also hit new yearly highs last week on the back of strong corporate results.

* Earnings season continues in full force, with Anadarko Petroleum Corp, Hartford Financial Services Group Inc and Massey Energy Co scheduled to report on Monday. Humana Inc reported results earlier in the day.

* S&P 500 futures rose 6.5 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 72 points, and Nasdaq 100 futures put on 12.25 points.

* Economic indicators on tap for Monday included March construction spending data and the Institute for Supply Management's April manufacturing report, which is seen dropping to 59.9 from 61.2 a month earlier. Both datapoints are due at 10:00 a.m. EST

* Warren Buffett, the chairman of Berkshire Hathaway Inc still believes his reputation is intact despite a former top lieutenant buying shares in Lubrizol Corp before pitching a takeover of the chemicals company.

* Speaking at Berkshire's annual meeting, Buffett remained bullish on the American economy and said it was not a credit risk.

* In company news, final buyout bids for Warner Music Group Corp were due on Monday, with a deal valued at over $3 billion possibly coming by the end of the week, a source said.

* In Europe, the pan-European FTSEurofirst 300 index edged higher, though volume was expected to be thin as Britain's markets were closed for a holiday.

* Japan's Nikkei stock average ended above the closely watched 10,000 mark for the first time since the March 11 earthquake and tsunami on optimism over U.S. gains following the death of bin Laden.

* On Friday, U.S. stocks rose on strength from Caterpillar Inc and other industrials, though weakness in Microsoft Corp limited the Nasdaq's rise.

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