RTTNews - U.S. stocks are set to open slightly higher on Monday morning amid concerns about the pace of economic recovery as confidence wanes amid mixed economic signals. The court verdict on Bernard Madoff in the Ponzi scam might be of interest to the investors. The markets are likely to meander in a sombre pace awaiting clear signals of a bottom.
Trading may assume a tentative tone, as traders look forward to the release of some key first-tier economic reports, including the June non-farm payrolls report and the Institute of Supply Management's Manufacturing Survey during the course of the week. Trading volume is likely to be light due to the week being truncated by the independence day holiday on Friday.
As of 6.45 am ET, the Dow Futures were up 31 points, the S&P Futures were up 3.80 points, and the Nasdaq 100 futures were up 5.50 points.
On Friday, the stocks ended mixed amid lackluster performance characterized by lower volumes as investors turned jittery about the prospects of economic recovery following weak economic fundamentals.
While the Nasdaq closed up by 8.68 points or 0.5% at 1,838, the Dow slipped by 34.01 points or 0.4% to close at 8,438 and the S&P 500 fell 1.36 or 0.2% to close at 919.
Tax consulting service provide H & R Block (HRB) is slated to release financial results for the fourth quarter Analysts expect the company to report EPS of $2.05 for the quarter.
In Europe, a survey released by the European Commission revealed that economic sentiment in the Eurozone improved for the third consecutive month in June to 73.3 from 70.2 in May. The International Monetary Fund, or IMF, in its report on France, warned that high public debt and the fiscal stimulus would significantly worsen France's fiscal outlook over the medium term. The agency further noted that the fall in tax revenues in 2009-10 due to the sharp contraction in economic output will lead to uncomfortably high fiscal deficits.
More evidence of a near term recovery is emerging from Asia, as the latest industrial production report from Japan showed that output jumped 5.9% in May, marking the third straight month of increase. More importantly, manufacturers seem to be upbeat, with the ministry's survey of manufacturing revealing that they expect increases in industrial production over the next two months.
The price of crude oil is moving northward, recovering the its early losses in Asian trading and is presently quoted at $69.31, up 15 cents from previous close at $69.16 on Friday. On the currency front, the Euro is presently currently trading higher against the greenback and other major currencies following the release of better than expected economic data from the region. economic sentiment survey for the Euro area..
European markets are trading in the positive territory, led by drug makers and commodities, following a rise in commodity stocks.
Markets across Asia ended in negative territory amid growing concerns about the state of the global economy as confidence seems to be waning.
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