Bloomberg News

U.S. Stock Futures Extend Gains After Jobless, Spending Data

June 27, 2013

U.S. stock futures extended gains after reports showed consumer spending rebounded in May and fewer Americans filed claims for unemployment last week.

Standard & Poor’s 500 Index futures expiring in September advanced 0.6 percent to 1,605.70 at 8:33 a.m. in New York.

Household purchases, which account for about 70 percent of the economy, rose 0.3 percent after a 0.3 percent decline the prior month that was the biggest since September 2009, Commerce Department figures showed today in Washington. Incomes advanced 0.5 percent, more than projected.

Jobless claims decreased by 9,000 to 346,000 in the week ended June 22 from a revised 355,000 the prior period, the Labor Department reported today in Washington. The Bloomberg survey median called for 345,000 claims.

The S&P 500 has rallied 1.9 percent over the past two days, after dropping more than 5 percent since May 21 as the Federal Reserve said it may reduce its bond purchases if the economy and labor market improve as forecast. The benchmark gauge is headed for a 1.7 percent retreat in June, which would end a streak of seven monthly advances, the longest run since September 2009.

Central bank stimulus has helped fuel a rally in stocks worldwide, with the benchmark U.S. index surging as much as 147 percent from its March 2009 low. Despite this month’s decline, the S&P 500 is up 2.2 percent for the quarter and has rallied 12 percent for 2013.

To contact the editor responsible for this story: Jeremy Herron at jherron8@bloomberg.net


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