Stock futures rise ahead of economic data

[May 29, 2009]  NEW YORK (AP) -- Stocks headed for a higher open Friday ahead of more reports expected to show the economy is steadying.

Analysts expect the government will report a slower decline in first-quarter gross domestic product than initially estimated. Readings on consumer sentiment and business activity in the Midwest, meanwhile, are expected to have improved in May.

Investors also appeared relieved about another slight dip in Treasury rates in early trading. A spike in interest rates earlier this week stoked concerns about Americans' ability to borrow and refinance mortgages.

Before the market's open on Friday, the last trading day of May, Dow Jones industrial average futures are up 42, or 0.5 percent, at 8,426. Standard & Poor's 500 index futures are up 6.60, or 0.7 percent, at 911.70. Nasdaq 100 index futures are up 9.75, or 0.7 percent, at 1,428.00.

In earnings news, Dell Inc. late Thursday said its profit in the most recent quarter sank 63 percent on crimped computer sales. The report did not paint a rosy picture for the computer market, but the profit came in slightly better than expected.

Government bonds rose modestly early trading, pushing yields lower. The benchmark 10-year Treasury note, which moves opposite its price, saw its yield fall to 3.60 percent from 3.62 percent late Thursday. The 10-year yield hit a six-month high of 3.75 percent on Wednesday.

The dollar fell against other major currencies.

Energy companies have been getting a lift from energy prices hitting six-month highs. Light, sweet crude rose $1.04 to $66.12 a barrel on the New York Mercantile Exchange. That's nearly double the lows reached in March, when crude tumbled below $35 a barrel.

Overseas, Japan's Nikkei stock average rose 0.8 percent. In midday trading, Britain's FTSE 100 rose 1.3 percent, Germany's DAX index rose 1.4 percent, and France's CAC-40 rose 1.5 percent.

[Associated Press; By MADLEN READ]

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