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US STOCKS-Futures rise ahead of manufacturing data

Published 01/10/2019, 12:18
Updated 01/10/2019, 12:20
© Reuters.  US STOCKS-Futures rise ahead of manufacturing data
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* Futures up: Dow 0.19%, S&P 0.19%, Nasdaq 0.27%

By Medha Singh

Oct 1 (Reuters) - U.S. stock index futures gained on Tuesday

ahead of the release of manufacturing data as investors looked

for fresh signs of domestic demand in the world's largest

economy amid softening global growth.

The ISM's purchasing managers index (PMI) data, due at 10:00

a.m. ET (1400 GMT), is likely to show the manufacturing sector

rebounded to 50.1 in September after contracting for the first

time in 3-1/2 years to 49.1 in August.

It comes on the heels of euro zone data, which showed

manufacturing activity in the bloc contracted at its steepest

rate in almost seven years. Despite a prolonged U.S.-China trade war, which poses the

biggest risk to global growth, confidence in the domestic

economy is one of the factors that has helped the benchmark S&P

500 .SPX climb 18.7% so far this year.

A crucial jobs report on Friday is expected to shed further

light on U.S. economic growth. The Federal Reserve is also

looking at these data to determine whether it should cut

interest rates again this year.

At 7:06 a.m. ET, Dow e-minis 1YMcv1 were up 51 points, or

0.19%. S&P 500 e-minis EScv1 were up 5.75 points, or 0.19% and

Nasdaq 100 e-minis NQcv1 were up 20.75 points, or 0.27%.

Philip Morris International Inc PM.N gained 1.8% in

premarket trading after reports that Bank of America Merrill

Lynch upgraded the cigarette maker's stock to "buy" from

"neutral."

As the final quarter of 2019 kicks off, investors will be

focusing on a range of factors, beginning with the high-stakes

Sino-U.S. trade talks in early October, corporate earnings and

the Fed's next policy meeting.

Chicago Federal Reserve Bank President Charles Evans said on

Tuesday he expected the Fed funds rate to increase slightly over

the next few years as the U.S. economy grew and inflation

accelerated.

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