MARKET SNAPSHOT: U.S. Stocks Set To Rise After Government Shutdown Averted

By Victor Reklaitis, MarketWatch Features Dow Jones Newswires

Many other global markets shut for holiday; Renzi win in Italy also soothes nerves

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U.S. stock futures edged higher Monday, with analysts pinning the small gains on a deal among Congressional leaders to fund the government through Sept. 30.

The main indexes trimmed their gains slightly, however, after weaker-than-expected readings on consumer spending, personal income and inflation data.

The Federal Reserve's preferred measure of inflation (http://www.marketwatch.com/story/us-inflation-retreats-in-march-from-5-year-peak-2017-05-01), personal consumption expenditures index, retreated from a five-month peak in March.

S&P 500 futures rose by 6 points, or 0.2%, to 2,386, while Dow Jones Industrial Average futures gained 36 points, or 0.2%, to 20,910. Nasdaq-100 futures tacked on 18 points, or 0.3%, to 5,599.

The deal to fund the government (http://www.marketwatch.com/story/congress-reaches-deal-to-fund-government-through-september-2017-04-30) includes an increase in defense spending, a priority for President Trump and his fellow Republicans. The agreement also includes $1.5 billion for border security, but says explicitly that the money can't be used to pay for the construction of a new border wall that Trump has made a signature project.

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"The avoidance of a U.S. government shutdown helped markets shift from a neutral to more positive tone overnight in Asia," said Jasper Lawler, senior market analyst at London Capital Group, in a note early Monday. "The Japanese yen extended last week's losses on Monday as geopolitical risk retreated, helping Japanese stocks gain (http://www.marketwatch.com/story/japanese-stocks-end-higher-with-key-asian-and-european-markets-shut-for-holiday-2017-05-01)."

"With many market closed around the world including most of Europe, trading should be light on Monday," Lawler added.

In other political news, former Italian Prime Minister Matteo Renzi emerged victorious over the weekend in a key primary election (http://www.marketwatch.com/story/matteo-renzi-on-track-to-win-italys-democratic-party-election-2017-04-30), helping to soothe investors who have worried about disruptions to the status quo in Europe.

On Friday, the S&P 500 , Dow and Nasdaq Composite closed lower (http://www.marketwatch.com/story/us-stocks-face-a-muted-start-even-as-amazon-alphabet-get-set-to-roar-2017-04-28), but still gained for the week and for April.

Economic news: Consumer spending was unchanged in March, while personal income climbed 0.2%. In March, the PCE index fell 0.2% to mark the first decline in more than a year.

At 9:45 a.m. Eastern, a Markit report on manufacturing is due. Then at 10 a.m. Eastern, investors are scheduled to get an ISM release on manufacturing and March data on construction spending.

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Later in the week, investors face more possible market catalysts, as the Federal Reserve is due to make a policy announcement on Wednesday and the April jobs report arrives Friday.

See:Fed, jobs data and Apple earnings to keep investors busy (http://www.marketwatch.com/story/fed-jobs-data-and-apple-earnings-will-keep-stock-market-investors-busy-2017-04-29)

Individual movers: Shares in WGN America parent Tribune Media Co.(TRCO) could see active trading following reports that 21st Century Fox Inc.(FOX) and private equity firm Blackstone Group(BX) are in talks about a joint bid to buy the broadcaster (http://www.marketwatch.com/story/fox-blackstone-may-launch-joint-bid-for-tribune-media-report-2017-04-30).

Neurotrope Inc.(NTRP) shares plummeted 33.6% in premarket trade after the company released mid-stage clinical trial results for an Alzheimer's disease drug that were criticized by investors.

Ahead of the open, pay TV company (http://www.marketwatch.com/story/dish-network-profit-beat-expectations-but-sales-missed-as-subscribers-dropped-2017-05-01)Dish Network Corp.(DISH) and drug distributor (http://www.marketwatch.com/story/cardinal-health-reports-q3-profit-beat-revenue-miss-2017-05-01)Cardinal Health Inc.(CAH) both reported quarterly profit that beat expectations, but sales that missed forecasts.

Other markets:Oil futures (http://www.marketwatch.com/story/crude-prices-fall-extending-weak-april-tone-2017-05-01) traded moderately lower, and gold futures also stepped back. A key dollar index was slightly higher. The yield on the 10-year Treasury bond was unchanged at 2.29%.

(END) Dow Jones Newswires

May 01, 2017 08:47 ET (12:47 GMT)