LONDON -- Stock index futures at 7 a.m. EDT indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI ) may open 0.26% higher this morning following a 207-point gain on Friday, while the S&P 500 (SNPINDEX: ^GSPC ) may open 0.35% higher. CNN's Fear & Greed Index has recovered to 46, or "neutral," after closing at 32, or "fear," on Friday.
European markets were broadly unchanged this morning at the start of what is expected to be quiet day, with no major economic reports due in the U.S or Europe. Overnight news that Japan's first-quarter GDP growth was upgraded from 3.5% to 4.1% helped Japan's Nikkei 225 rebound to a 4.9% gain, and most other Asian markets closed slightly higher after last week's losses. In London, the FTSE 100 is up almost 1% as of 7:35 a.m. EDT, while the German DAX is up 0.9 %. The FTSE was held back by falls for resource stocks, which weakened on news that consumer price-inflation in China dropped 2.1% in May from 2.4% in April, missing consensus forecasts of 2.5%. Falling inflation is likely to indicate weak underlying demand for key commodities.
No U.S. economic reports are due today, so investors may continue to consider the implications of Friday's nonfarm payrolls report, which showed that 175,000 jobs were added to the U.S. economy in May. This is below the 200,000 level needed to deliver a material fall in unemployment, and the unemployment rate rose from 7.5% to 7.6% in May, increasing investors' confidence that the Federal Reserve will continue with its QE program for some time yet.
Among the handful of large companies due to report results today, Texas Instruments is expected to report second-quarter earnings of $0.42 per share on revenue of $3.1 billion after markets close tonight, while clothing retailer Lululemon Athletica is expected to report earnings of $0.30 per share on revenue of $341 million. A Bloomberg report suggested that Google may be about to announce a $1.1 billion deal to acquire Waze, an Israeli mapping and navigation firm. Apple may also be in focus; the iPhone-maker is expected to reveal an updated version of the software used on its iPad and iPhone devices at the firm's annual developer conference, which starts today.
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