US stock futures rise on cautious Euro optimism

US stock futures rise on cautious Euro optimism following Spain bank tests, manufacturing data

Associated Press
Trading mixed as Spanish speculation grows
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FILE- In this Sept. 20, 2012, file photo, trader Andrew Silverman, left, works on the floor of the New York Stock Exchange. European stocks edged higher on Monday, Oct. 1, 2012, as investors cautiously welcomed the result of stress tests of Spain's banks. But the threat that Moody's might downgrade the country's debt rating to junk status limited gains.(AP Photo/Richard Drew, File)

NEW YORK (AP) -- U.S. stock market futures rose Monday, following European markets higher, as investors cautiously welcomed the result of stress tests of Spain's banks and a slight improvement in a survey of the eurozone's manufacturing sector.

After the markets posted a decline on Friday but remained higher for the week, U.S. investors were awaiting the release of two measures of economic activity: The Commerce Department was set to report increased spending on construction projects in August at 10 a.m., after July showed the biggest drop of the year.

At the same time, the Institute for Supply Management is slated to release its manufacturing index for September, which is expected to stay unchanged at 49.6. Readings above 50 indicate expansion and below 50 signal contraction.

Traders are also awaiting a speech by Federal Reserve Chairman Ben Bernanke on monetary policy.

Dow Jones industrial average futures added 72 points at 13,427. The broader Standard & Poor's 500 futures gained 6.6 points to 1,440.80. Nasdaq futures shot up 28 points at 2,807.8.

Casting a shadow over markets overseas was a possible downgrade by credit rating agency Moody's of Spain's debt rating to junk status.

Germany's DAX stock index rose 1.3 percent and France's CAC-40 was up 1.65 percent. Britain's FTSE 100 rose 1 percent while Spain's Ibex was up 1.2 percent.

In Asia, markets in China, Hong Kong and South Korea were closed for holidays. In Tokyo, Japan's Nikkei 225 index fell after a survey showed confidence in the economy weakening.

U.S. stocks to watch Monday include Citigroup Inc., which added 28 cents to $33 in premarket trading despite a downgrade to "Neutral" by a Sterne, Agee analyst.

Hamburger chain Wendy's Co. also saw a rating cut, to "Neutral" from "Buy," from Janney Capital Markets. Shares were unchanged at $4.52 in premarket trading.

And Johnson & Johnson added 9 cents in early trading to $68.91 as a new anticlotting drug was set to come under scrutiny by a panel of outside advisers to the Food and Drug Administration, two days after a negative review by staff. If approved, the drug is expected to be a blockbuster.

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