Stocks set to jump at open

By CNNMoney.com staff


NEW YORK(CNNMoney.com) -- U.S. stocks were poised to start September with a bang Wednesday, as investors aimed to put last month's dour performance behind them.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were up more than 1% ahead of the opening bell.

Futures measure current index values against perceived future performance.

Investors are keen to start the new month on a positive note, following a lackluster August. The Dow slipped 4.3%, the S&P 500 fell 4.7%, and the Nasdaq lost 6.2% in the month.

"The positive manufacturing news is really helping markets start strong," said Philip Isherwood, equities strategist at Evolution Securities. "Chinese manufacturing rebounded and helped persuade investors that China isn't headed for a downturn, and Indian and Russian manufacturing was also strong."

Economists are expecting data due later Wednesday to show that U.S. manufacturing eased in August. Isherwood said as long as the figures are significantly weaker than forecasts, investors will discount that data and markets will remain in positive territory.

Economy: Planned job cuts plummeted to a 10-year low in August, as employers shed 34,768, down 17% from the previous month, according to outplacement firm Challenger, Gray & Christmas.

A separate report from payroll processing firm ADP showed that employers cut 10,000 jobs in August. Economists were expecting private sector employers to add 13,000 jobs during the month, after adding 37,000 in July.

After the start of trading, the Institute for Supply Management's (ISM) index of manufacturing is expected. Economists forecast the index to have eased to 52.9 in August, from 55.5 in July. Any number above 50 indicates growth in the sector.

Separately, the government is set to issue a report on construction spending. The reading is expected to show that spending dropped 0.7% in July, after gaining 0.1% in June.

Auto and truck sales are due throughout the day, and the government's weekly oil inventory report is also on tap.

Companies: Shares of Burger King Holdings (BKC) jumped 16.7%, following a report that the fast food chain is considering a possible sale to buyout firms. The Wall Street Journal reported that that private equity firms that have expressed interest in buying Burger King include Britain's 3i Group.

Apple's (AAPL, Fortune 500) stock was up 1% in premarkets as investors geared up for the company's annual music-themed special event. CEO Steve Jobs is expected to unveil its newest iPods and advances in the iTunes music store.

Shares of BP (BP) climbed 2.2% as the oil giant said it has agreed to sell its interests in ethylene and polyethylene production in Malaysia to government-owned Petronas for $363 million in cash.

World markets: European shares rose in afternoon trading. The FTSE 100 in Britain jumped 1.3%, the CAC 40 in France added 1.7% and the DAX in Germany gained 1%.

In Asia, Japan's benchmark Nikkei index gained nearly 1.2%, rebounding after hitting a 16-month low on Tuesday, and the Hang Seng in Hong Kong rose 0.4%. the Shanghai Composite fell 0.6%, despite a report that showed China's manufacturing sector bounced back in August after several months of slowing.

Currencies and commodities: The dollar fell against the euro and the British pound, but rose versus the Japanese yen.

Currency trading volume around the world has hit $4 trillion a day, a 20% jump compared to 2007, said the Bank of International Settlement.

Oil futures for October delivery rose 65 cents to $72.57 a barrel. Gold for December delivery climbed $3.60 to $1,253.90.

Bonds: The yield on the 10-year Treasury note rose to 2.53% from 2.48% late Tuesday. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.