Futures up as jobs data lifts investor confidence

[July 11, 2016]  By Yashaswini Swamynathan

(Reuters) - U.S. stock index futures were higher on Monday after a stunning monthly jobs report boosted investor confidence, sending the S&P 500 within striking distance of its record high.

The June payrolls data on Friday assuaged fears that a dismal showing in May was just an aberration and not indicative of weakness in the U.S. labor market.

Wall Street closed sharply higher on Friday, with the S&P closing just 5 points away from its all-time high of 2,134.72.

Investors are now focusing on second-quarter corporate results, which will be kicked off by Alcoa <AA.N>. The metals company reports after markets close.

Earnings are expected to fall 3.9 percent in the quarter compared with the year-earlier quarter, according to Thomson Reuters data. First-quarter earnings had fallen 5 percent.

Investors will watch for comments from company executives, especially those of big banks later this week, on the impact of Britain's vote to leave the European Union.

Investors are also betting on the U.S. Federal Reserve to be cautious on raising interest rates as it gauges the economy's ability to absorb a hike amid the uncertainty sparked by the Brexit vote.

Treasury yields continued to hover around record lows, indicating a weak appetite for riskier assets.

Oil prices fell 1.2 percent over signs that U.S. shale drillers have adapted to lower prices and renewed indications of economic weakness in Asia where refiners are trimming crude runs. [O/R]

Traders are not betting on significant chances of a rate hike anytime this year, according to CME Group's FedWatch tool. The Fed next meets on July 26-27.

Kansas Fed President Esther George is scheduled to speak on the U.S. economy at a conference in Missouri at 10:00 a.m. ET.

Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York, U.S., July 6, 2016. REUTERS/Lucas Jackson

Shares of electric car maker Tesla rose 1.2 percent to $219.40 premarket after CEO Elon Musk on Sunday tweeted his intention to soon publish part two of his "top secret Tesla masterplan".

Alliance Data was up 2.5 percent after activist investor ValueAct Capital reported a 6.8 percent stake.

Futures snapshot at 6:59 a.m. ET:

Dow e-minis were up 66 points, or 0.37 percent, with 24,343 contracts changing hands.

S&P 500 e-minis were up 6.75 points, or 0.32 percent, with 189,576 contracts traded.

Nasdaq 100 e-minis  were up 22.25 points, or 0.49 percent, on volume of 21,243 contracts.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)

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