US stock futures rise ahead of economic data

[April 30, 2009]  NEW YORK (AP) -- Stocks are set to extend their rally as investors hoped for reassuring readings on jobless claims, personal spending and manufacturing.

In premarket trading Thursday, stock futures rose sharply ahead of the economic data. The reports are not supposed to show a strong turnaround. Economists predict that new claims rose modestly last week, while income and spending dipped slightly in March. And they forecast a slight rise in the Chicago purchasing managers' April index.

But investors know that the stock market usually rebounds before the economy does, and they do not want to miss out on a rally. Signs have been emerging that conditions in the United States, while not yet healthy, are becoming less dire. On Wednesday, the major stock indexes surged more than 2 percent after the government said the economy shrank sharply in the first quarter, but the Federal Reserve said the contraction appears to be slowing.

Investors appeared unfazed by news Thursday that Chrysler LLC might be on the brink of bankruptcy. Talks have disintegrated between the Chrysler's lenders and the government, a person familiar with the matter said, over the automaker's debt.

Before the market opening, Dow Jones industrial average futures rose 148, or 1.8 percent, at 8,273. Standard & Poor's 500 index futures gained 15.90, or 1.8 percent, at 885.00. Nasdaq 100 index futures added 23.75, or 1.7 percent, at 1,401.50.

U.S. government bond prices were modestly lower.

The dollar was mostly lower against other major currencies. Gold prices fell.

Light, sweet crude rose 82 cents to $51.79 a barrel in electronic trading on the New York Mercantile Exchange.

In overseas trading, Japan's Nikkei stock average jumped 3.9 percent. By midday in Europe, Britain's FTSE 100 rose 2.4 percent, Germany's DAX index rose 2.7 percent and France's CAC-40 rose 1.9 percent.

[Associated Press; By MADLEN READ]

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