Futures edge higher on technology boost

[June 05, 2018]   By Medha Singh

(Reuters) - U.S. stock index futures rose for a third day on Tuesday as record highs for the tech-heavy Nasdaq and a jump in Twitter shares, on its addition to the S&P 500, added to a dose of economic optimism since Friday's job data.

A strong gain in tech stocks led by Apple <AAPL.O> and Microsoft <MSFT.O> boosted the broader sentiment and the tech-heavy Nasdaq <.IXIC> to a record close on Monday.

Twitter <TWTR.N> gained 4.5 percent in premarket trading on the social network's inclusion in the benchmark S&P 500 index.

Netflix <NFLX.O>, which is set to join the S&P 100, rose 0.6 percent.

A relentless rally of the stock markets in 2017, that sent the main U.S. indexes to record highs almost every other week, came to a halt in late January on issues ranging from rising interest rates, trade concerns to geopolitical issues.

However, strength in the U.S. economy, as shown by the latest jobs report has helped investors shift their focus back to fundamentals.

ISM's non-manufacturing PMI data for May, due at 10:00 am ET, is expected to have increased to 57.5 from a prior reading of 56.8.

Mexico is set to impose a 20 percent tariff on U.S. pork imports, sources told Reuters, in response to U.S. President Donald Trump's tariffs on steel and aluminum levied last week.

Later this week Canada plays host to the G7 summit with six of the seven members outraged at the United States over a slew of recent moves by President Donald Trump.
 

A trader works on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., June 4, 2018. REUTERS/Lucas Jackson

At 7:14 a.m. ET, Dow e-minis <1YMc1> were up 40 points, or 0.16 percent. S&P 500 e-minis <ESc1> were up 4.25 points, or 0.15 percent and Nasdaq 100 e-minis <NQc1> were up 16.5 points, or 0.23 percent.

Starbucks <SBUX.O> fell 1.3 percent after Executive Chairman Howard Schultz, who built the coffee chain into a global powerhouse, decided to step away.

Mylan <MYL.O> rose 4.5 percent after U.S. health regulators approved its biosimilar to Amgen Inc's <AMGN.O> blockbuster drug, Neulasta.

Navistar <NAV> jumped 9.5 percent as robust demand for its trucks helped the company raise its full-year revenue and deliveries forecast.

(Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta)

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