Stock futures inch higher
U.S. stocks were set to start the new month on a positive note, as traders looked ahead to the release of the July non-farm payrolls report later in the week.
Analysts polled by Dow Jones expect the report to show 788,000 new jobs were added to the US economy in July. That compares with a gain of 850,000 jobs in June.
The health of the labor market is one of the key measures for the Federal Reserve in determining the path for interest rates and bond-buying program, so an upbeat number could further add to expectations for a tapering.
By 5:40 a.m. ET, futures for the blue-chip Dow advanced 186 points, or 0.53% to 35,018. S&P 500 futures jumped 27.75 points, or 0.63% to 4,417.25 while the technology-dominated Nasdaq 100 futures rose 86 points, or 0.58% to 15,041.75.
Square to acquire service Afterpay in $29 billion deal
On the acquisition front, Square (NYSE: SQ) has announced plans it to buy Australia-based “buy now, pay later” service provider Afterpay Limited in an all-stock deal worth $29 billion.
The deal offers Square an opportunity to get a piece of the new hot new payment mode that is undermining its traditional stronghold in merchant card-based payments.
“Square and Afterpay have a shared purpose,” Square CEO Jack Dorsey said in a statement Sunday evening. “We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles.”
Shares of Afterpay, which is listed in Australia, rallied on that news to close with a gain of nearly 19% on Monday.
Square shares were marked $9.96, or 4.03% lower to $237.30 per share in the premarket trading session.
Crude tumbles on weak China data
On the commodities front, crude futures moved lower early Monday after a business survey showed Chinese factory activity growth slowed sharply in July as demand dwindled for the first time in over a year partly due to high product prices.
The Caixin/Markit manufacturing purchasing managers’ index (PMI) dropped to 50.3 in July from 51.3 in June, the lowest level since April last year.
As of writing, U.S. West Texas Intermediate crude futures were down 1.22%, or 90 cents to $73.05 barrel. Global Brent futures were at $74.58, down 83 cents, or 1.10% a barrel.
