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* Futures up: Dow 0.23%, S&P 0.34%, Nasdaq 0.29%
(Updates shares, adds comments)
By Uday Sampath Kumar
Sept 9 (Reuters) - U.S. stocks were set to open higher on
Monday, as mixed global economic data lifted expectations of
monetary stimulus from central banks, including the U.S. Federal
Reserve.
Markets were on course to extend gains from last week, which
ended with Fed Chairman Jerome Powell saying the central bank
would "act as appropriate" to sustain economic expansion, a
phrase that financial markets have read as signs of a potential
interest rate cut. The Fed cut interest rates for the first time since 2008 in
July, setting them between 2% and 2.25%. Bets of another cut
rose after data on Friday showed the U.S. economy added
fewer-than-expected jobs in August.
Traders see a 91.2% chance of a quarter percentage point cut
in the Fed's September policy meeting, up from 90% on Friday,
according to CME's FedWatch. The European Central Bank is also
expected to cut rates later this week. The S&P 500 .SPX gained 1.8% last week as a slew of
positive global economic news, including China's decision to
slash bank reserve requirements, more than offset a mixed set of
domestic economic data.
The benchmark index added to its positive momentum on Monday
by breaking out of its August trading range late last week, said
Shawn Gibson, Chief Investment Officer of asset management firm
Liquid Strategies in Atlanta.
"Barring any surprise news, this should be a quiet week in
the equity market as most investors are on hold until next week
for the FOMC (Federal Open Market Committee) meeting," Gibson
said.
In company news, AT&T Inc T.N shares rose 6.7% after
shareholder Elliott Management Corp called the wireless carrier
"deeply undervalued" and urged it to restructure its business.
Boeing (NYSE:BA) Co BA.N fell 1% after it suspended load testing of
its new widebody 777X aircraft over the weekend as media reports
said a cargo door failed in a ground stress test. Shares of Fred's Inc FRED.O plunged 41.1% after the
discount retailer said it was filing for Chapter 11 bankruptcy
protection. At 8:50 a.m. ET, Dow e-minis 1YMcv1 were up 62 points, or
0.23%. S&P 500 e-minis EScv1 were up 10 points, or 0.34% and
Nasdaq 100 e-minis NQcv1 were up 22.5 points, or 0.29%.
Among other stocks, drugmaker Amgen Inc AMGN.O fell 3%,
the biggest loser among S&P 500 components in premarket trading,
as analysts raised questions about data on the company's lung
cancer drug. Shares of fellow drugmaker Eli Lilly (NYSE:LLY) and Co LLY.N rose
1.4% as data showed its experimental cancer drug shrank tumors.