Wall Street appears headed for higher open on upbeat data on consumer spending, manufacturing

Futures extend gains on consumer spending data

NEW YORK — Stock futures are extending their gains following a report showing a smaller-than-expected dip in consumer spending.

The government says consumers trimmed their spending in April by 0.1 percent, slightly less than the 0.2 percent reduction forecast by economists. Meanwhile, wages and salaries were flat in April. Personal income was expected to decline by 0.2 percent.

Stock futures had been higher ahead of the report on upbeat data on manufacturing activity overseas.

The gains came even as General Motors filed for bankruptcy protection, as expected.

Dow Jones industrial average futures are up 118 to 8,606. Standard & Poor’s 500 index futures are up 16 to 934, and Nasdaq 100 index futures are up 12 to 1,447.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — U.S. stock futures pointed higher Monday as data on the manufacturing industry added to hopes that the global economy may soon recover.

Investors looked to extend the market’s rally into a fourth month, taking a cue from overseas markets, which surged following surveys in Europe and Asia that showed the manufacturing sector is healing. Investors are awaiting a similar survey on the U.S. manufacturing industry later Monday morning.

Analysts expect the Institute for Supply Management to report that its purchasing managers’ index rose to 42.0 in May from 40.1 in April. Anything below 50 indicates contraction, but the reports in Europe and Asia are fueling hopes of an even bigger increase than analysts are forecasting.

The gains came despite General Motors Corp.’s impending filing for bankruptcy protection.

The move, which has been highly anticipated, will give the government a 60 percent stake in the ailing automaker. The government is expected to provide GM with an additional $30 billion, on top of $20 billion in government loans GM has already received, to help it restructure. Meanwhile, rival Chrysler LLC, which filed for Chapter 11 protection in April, is expected to emerge from bankruptcy protection this week.

Investors will also look to reports from the Commerce Department on personal income and spending, as well as construction spending, for April later Monday morning.

Ahead of the market’s open, Dow Jones industrial average futures rose 98, or 1.2 percent, to 8,586. Standard & Poor’s 500 index futures rose 12.40, or 1.4 percent, to 930.50, while Nasdaq 100 index futures gained 16, or 1.1 percent, to 1,451.50.

Overseas, Japan’s Nikkei stock average jumped 1.6 percent, while Hong Kong’s Hang Seng index soared 4.0 percent. In European trading, Britain’s FTSE 100 was up 1.4 percent in afternoon trading, while Germany’s DAX index rose 3.0 percent and France’s CAC-40 gained 2.0 percent.

Stocks have wavered in the past few weeks as investors question the sustainability of the market’s stunning three-month advance; Since March 9, the Dow is up 29.8 percent, the S&P 500 index is up 35.9 percent and the Nasdaq is higher by 39.9 percent. The gains have been fueled in large part by data showing a moderation in the economy’s slide.

On Friday, Wall Street secured the third month of its spring rally with all the major indexes rising at least 1.2 percent on a mix of economic data and soaring commodity prices.

Despite the recent gains, the market is still well off its October 2007 peak. The recession has cut into the Dow by 40 percent since then.

Investors are well aware that the stock market tends to turn around before the economy does. But analysts have warned that the market’s surge may have been too big too quick and that some pullback is necessary for a healthy march higher.

New worries have also begun to seep into the market, including a sinking dollar and climbing interest rates. Investors fear such developments could threaten the economy’s recovery.

Analysts expect the market to remain volatile as investors in need of reassurance to keep buying search for more concrete signs that the economy is improving.

More readings on the housing and labor market this week — two crucial areas of the economy that the market has been closely watching — will largely determine which way Wall Street moves. Earnings reports from major homebuilders, data on pending home sales and the highly anticipated jobs report for May are all on tap this week.

Government bonds fell early Monday, pushing yields higher. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.54 percent from 3.46 percent late Friday.

The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude jumped $1.57 to $67.88.