Bullish jobs fallout keeps Wall Street on the up

[June 04, 2018]   By Medha Singh

(Reuters) - U.S. stock indexes were set to open higher on Monday as stronger than expected U.S. jobs data for May drove global stock markets up across the board for a second day.

The S&P 500 <.SPX> closed up more than 1 percent on Friday after jobs and wage growth for May both beat expectations, with the unemployment rate falling to an 18-year low.

Concerns that bullish economic numbers will lead to faster rises in interest rates and relatively lower future growth have sent U.S. stocks tumbling on several occasions this year. But investors said they did not find Friday's data concerning.

By 7:39 a.m. ET, Dow e-minis <1YMc1> were up 138 points, or 0.56 percent. S&P 500 e-minis <ESc1> were up 9.75 points, or 0.36 percent and Nasdaq 100 e-minis <NQc1> were up 24.75 points, or 0.35 percent.

The United States and China ended their latest round of trade negotiations on Sunday, with Commerce Secretary Wilbur Ross and his delegation leaving Beijing without making a public statement, and China making no mention of any new agreements.

China warned any tariffs and other trade measures implemented by Washington would derail any agreements between the two sides.
 

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 29, 2018. REUTERS/Brendan McDermid

Over the weekend, finance leaders of the closest U.S. allies vented anger over the Trump administration's metal import tariffs, ending a three-day meeting with a stern rebuke of Washington and setting up a heated fight at a G7 summit next week in Quebec.

Last week, the United States imposed 25 percent steel and 10 percent aluminum tariffs on Mexico, Canada and the European Union after temporary exemptions expired.

Among stocks, Merck <MRK.N> rose about 2 percent after latest data showed the company's cancer drug Keytruda improved survival as a stand-alone treatment for a type of lung cancer.

Whirlpool <WHR.N> rose 2.5 percent after Credit Suisse upgraded the stock to "buy" as it expects higher demand and rising appliance cost to help offset higher input costs for the company and support improved profitability in the North America over next quarters.

(Reporting by Medha Singh in Bengaluru)

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