US futures slightly higher ahead of data; Dow Jones up 0.05%By Forexpros | Stock Market News | Jul 02, 2012 11:05AM GMT | Add a CommentForexprosArticleTweet Forexpros – US stock futures pointed to a slightly higher open on Monday, as investors remained cautious after the announcement of new measures to tackle the euro zone’s debt crisis and weak economic reports, while markets eyed the release of US data later in the day.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.05% rise, S&P 500 futures signaled a 0.20% increase, while the Nasdaq 100 futures indicated a 0.09% gain.
On Friday, European Union leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt and also agreed to set up a joint banking supervisory body for the euro area.
In addition to the direct recapitalization of Spain’s banks, euro zone bailout funds will be able to purchase government debt in order to keep down borrowing costs.
NEW YORK, June 1 (Reuters) – Rating agency Moody’s Investors Service said it had lowered its ratings ceiling on Greek domestic debt issuers due to the rising risk of the country exiting the euro zone, but added it did not consider that the most likely scenario for the country.
But market sentiment cooled on Monday, as details about how and when European leaders can put the newly agreed measures into practice still remained uncertain.
Meanwhile, concerns over global growth resurfaced after official data showed that the unemployment rate in the euro zone rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
Financial stocks were expected to be active following a surge in European lenders.
The decision handed the iPhone maker its second legal victory against Samsung in a week and sent shares up 0.21% in early trading.
Elsewhere, Bristol Myers Squibb said it will buy biotechnology company Amylin Pharmaceuticals for about USD5.3 billion in cash, helping Bristol Myers extend its portfolio of diabetes treatments with the addition of drugs Byetta and Bydureon.
Also in company news, Lincare Holdings skyrocketed 19.05% in early trading after German industrial gas producer Linde said on Sunday it has agreed to pay USD4.6 billion for the Florida based provider of oxygen and respiratory therapy services to patients in the home.
Meanwhile, Dell climbed 0.96% amid reports it was near an agreement to buy Quest Software, a maker of programs to manage corporate computer systems, prevailing in a bidding contest with Insight Venture Partners.
The EURO STOXX 50 jumped 0.92%, France’s CAC 40 rallied 1.02%, Germany’s DAX advanced 0.94%, while Britain’s FTSE 100 climbed 0.54%.
During the Asian trading session, Hong Kong’s Hang Seng Index rose 0.9%, while Japan’s Nikkei 225 Index ended the session little changed.
Also Monday, data showed that China’s HSBC PMI posted a reading of 48.2 in June, little changed from an initial estimate of 48.1, remaining in contraction territory for the eighth successive month.
Later in the day, the US Institute for Supply Management was to release a report on activity in the manufacturing sector.
Dean Rockliffe is a business journalist based in Sao Paolo, Brazil. Dean has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Dean spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.