US STOCKS-US stocks set to open higher on consumer spending data

  • Reuters
  • Stock Market News
US STOCKS-US stocks set to open higher on consumer spending data
Credit: © Reuters.

* May consumer spending highest in six years

* Weekly jobless claims rise

* No breakthrough in Greek debt talks

* IAC jumps after plans for IPO of online dating business

* Futures up: Dow 49 pts, S&P 5 pts, Nasdaq 14 pts (Adds details, comment, updates shares)

By Tanya Agrawal

June 25 (Reuters) - Wall Street was set to open higher on Thursday as data showed that the U.S. economy was on the path to recovery after consumer spending recorded its largest increase in nearly six years.

Investors have been keeping a sharp eye on economic data for signs of a recovery in the U.S. economy, which came to a crawl in the first quarter, as the Federal Reserve prepares to raise interest rates for the first time in almost a decade.

The Commerce Department said consumer spending increased 0.9 percent last month, the biggest gain since August 2009, after the 0.1 percent rise in April. Personal income increased 0.5 percent last month after a similar gain in April. ID:nLNNPHEBC3

Weekly jobless claims rose 3,000 to a seasonally adjusted 271,000 for the week ended June 20 but labor market conditions continued to tighten. ID:nLNNPHEBC4

Talks between Greece and its international creditors remained inconclusive, but markets remained hopeful that a last-minute deal will materialize. Greece's creditors will now put forward their own proposal for a cash-for-reforms deal.

Wall Street closed lower on Wednesday as it took cues from the latest situation in Greece, with all 10 major S&P 500 sectors closing in the red.

"The market continues to be held hostage to the situation in Greece," said Art Hogan, chief market strategist at Wunderlich Securities in New York.

"Yesterday, it looked like the talks were less constructive and today we are seeing some movement in the right direction. The market would just like to see this situation in the rear-view mirror."

Financial firm Markit releases its Purchasing Managers Index for June at 9:45 a.m. ET, which is expected to have increased slightly to 56.7 from 56.2 in May.

Fed Governor Jerome Powell will speak before the Federal Reserve Bank of Kansas City, in Kansas City, Missouri.

S&P 500 e-minis ESc1 were up 5 points, or 0.24 percent, with 189,050 contracts traded at 8:48 a.m. ET. Nasdaq 100 e-minis NQc1 were up 13.5 points, or 0.3 percent, on volume of 33,578 contracts while Dow e-minis 1YMc1 were up 49 points, or 0.27 percent, with 31,799 contracts changing hands.

IAC/Interactive IACI.O shares jumped 7.1 percent to $82.75 after it said it planned to list its dating business, which includes and mobile dating app Tinder. ID:nL3N0ZB40I

Molycorp MCP.N slumped 35.6 percent to 23 cents after the rare earths miner filed for bankruptcy protection to restructure $1.7 billion of debt. ID:nL3N0ZB2UG

Cree CREE.O fell 7.7 percent to $28.21, a day after the company cut its revenue forecast for the fourth quarter. ID:nL3N0ZA58B

Winnebago Industries WGO.N rose 6.3 percent to $22 after the motorhomes maker reported a 7.6 pct rise in quarterly revenue helped by higher shipments of its motorhomes. ID:nL3N0ZB3VU

(Editing by Don Sebastian)

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