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US stock futures gained as stimulus tapering seems closer

stock_followingUS stock index futures advanced indicating the Standard & Poor’s 500 Index will gain for a third day as last week jobs data exceeded expectations and boosted speculations on Federal Bank that may taper stimulus as soon as September this year.

Future contracts on the S&P 500 Index expiring in September climbed 0.55% to 1,636.2 at 8:55 a.m. in New York. Contracts on the Dow Jones Industrial Average, soared 0.42 percent, to 15,140. The S&P gained 1.6% last week after the economy added more jobs in June than forecast. Chairman Ben Bernanke said on June 19 the central bank may pare its asset-purchase program this year and end it in mid-2014 if growth meets policy makers’ estimates.

“All eyes this week are likely to be on the latest FOMC (Federal Open Market Committee) minutes and comments from Ben Bernanke in light of Friday’s better-than-expected payrolls numbers,” Michael Hewson, a market analyst at CMC Markets Plc in London, wrote in an e-mail for Bloomberg. “Will he offer any clues as to the timing of possible tapering or will he simply reiterate previous comments made a few weeks ago?”

In Europe, the UKs FTSE 100 Index advanced 1.27%, at 2:00 p.m. in London. The gauge soared 2.6% last week, as the European Central Bank and the Bank of England pledged to keep interest rates low for the foreseeable future. Stoxx 50 and German Dax benchmark also rose more than 2.4%.

In corporate news, Alcoa, aluminium producer increased 1% in Germany. Priceline.com, the discount travel site, added 1.6% in early New York trading after Morgan Stanley raised its recommendation on the stock. Barrick Gold Corp. gained 2.2% in New York.

Dell Inc. rose 2.61% in early trading. Investors should accept founder Michael Dell’s $24.4 billion leveraged buyout plan for the company, according to Institutional Shareholder Services Inc. statement.

Xerox Corp., the printer and copier company, added 5.1% to $9.92 in New York.

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