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U.S. futures extend gains after ADP, jobless data; Dow up 0.5%

Published 07/07/2011, 08:38 AM
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Investing.com – U.S. stock futures pointed to a higher open on Thursday, as market sentiment was boosted by stronger-than-expected data on non-farm payrolls and first time jobless claims.

Dow Jones Industrial Average futures pointed to a gain of 0.5%, the S&P 500 futures advanced 0.8%, while Nasdaq 100 futures indicated a 0.65% increase.     

Stock futures added to gains after payroll processing firm ADP said that U.S. non-farm private employment rose by 157K in June, blowing past expectations for a gain of 60K.

Separately, official data showed that first time jobless claims declined by 14K to 418K last week, outstripping expectations for a decline to 420K.

Meanwhile, shares in telecommunications company Sprint Nextel jumped 2.9% in pre-market trade amid speculation Apple’s next generation iPhone will be retailed by the company. 

Clothing retailer Limited Brands saw shares climb 2.4% after it reported same-store sales rose by 12% in June. Shares of GAP rose 2.1% after same-store sales rose by 1%, rebounding from last month’s 4% drop.

Other retailers could be active as major companies release monthly sales data throughout the day.

Shares in data storage manufacturer Western Digital gained 1.2%, while rival Seagate Technology climbed 2.6% after JP Morgan upgraded their rating on the stocks to ‘overweight’ 

On the downside, credit card processing giant Visa saw shares drop 2.1% after it warned that earnings growth would slow in 2012 after the Federal Reserve's new debit card interchange fees come into effect.

Starbucks saw shares slide 1.5% after Goldman Sachs downgraded the stock to ‘neutral’ from ‘conviction buy’.

Across the Atlantic, European stock markets were broadly higher. The EURO STOXX 50 gained 0.8%, France’s CAC 40 added 0.75%, Germany's DAX advanced 0.7%, while Britain's FTSE 100 rose 0.72%.       

Earlier Thursday, the European Central Bank raised its benchmark interest rate to 1.50%, while the Bank of England kept rates on hold, in widely expected moves.

During the Asian trading session, Japan’s Nikkei 225 Index dipped 0.1%, while Hong Kong’s Hang Send Index edged 0.1% higher. 

Later in the day, the U.S. was release a report on crude oil inventories, as well as data on natural gas stockpiles.

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