* Futures higher ahead of jobs data
* Rio Tinto turns down Chinalco funding
* Futures up: Dow 54 pts; S&P 500 5 pts; Nasdaq 5.75 pct
* For up-to-the-minute market news click []
(Updates prices)
By Chuck Mikolajczak
NEW YORK, June 5 (Reuters) - U.S. stock index futures
pointed to a higher open on Friday as investors awaited key
monthly data on the labor market.
U.S. May non-farm payrolls were forecast to fall by
520,000, a slowing from the loss of 539,000 jobs in April,
although the previous month's number could be revised. The U.S.
unemployment rate is seen rising to 9.2 percent in May from 8.9
percent in April, according to Reuters poll.
"This morning's jobs number is going to be critical in
terms of giving us a picture of what's going on," said Paul
Mendelsohn, chief investment strategist at Windham Financial
Services in Charlotte, Vermont.
"Today's number is either going to confirm that the numbers
are improving, or at least not getting any worse. But if that
number comes in worse than expected, and if on top of that
you've got a worse-than-expected revision to the previous
month's number, then the market is not going to look at that
favorably."
Global miner Rio Tinto <RIO.L><RIO.AX> rejected $19.5
billion in funding from China's Chinalco on Friday in favor of
a cost-saving iron ore joint venture with rival BHP Billiton
<BLT.L> and a share sale to cut debt. [] Aluminum
producer Alcoa Inc <AA.N> rose 2.9 percent to $11 in premarket
trade.
S&P 500 futures <SPc1> rose 5 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones Industrial Average futures <DJc1> added 54
points, while Nasdaq 100 <NDc1> futures gained 5.75 points.
Apple Inc <AAPL.O> shares rose 1.9 percent to $146.49 in
premarket trade after the Wall Street Journal reported that
Chief Executive Steve Jobs is on track to return to the company
from a medical leave after being treated for a rare type of
pancreatic cancer. []
The Journal also reported the Federal Deposit Insurance
Corp is aiming to shake up Citigroup Inc's <C.N> top
management, including replacing CEO Vikram Pandit, citing
people familiar with the matter. [] Citigroup
shares added 0.8 percent to $3.60 in premarket trade.
A U.S. federal appeals court will hear arguments on Friday
to block the sale of Chrysler LLC to a group including Italian
carmaker Fiat SpA <FIA.MI> and the U.S. government, arguing it
violates longstanding bankruptcy law. [] The
ruling will have implications for General Motors Corp
<GMGMQ.PK>, which filed for bankruptcy on June 1.
European shares traded higher by midday, led by Rio Tinto,
after the mining group backed out of a planned tie-up with
Chianlco and announced a rights issue while planning a joint
venture with BHP Billiton <BLP.L>. []
Asian shares, oil and higher-yielding currencies rose as
positive signals from the latest U.S. weekly job data sparked
tentative optimism ahead of the Friday employment report.
[]
U.S. shares climbed Thursday as a brokerage's upbeat view
on U.S. banks sparked a run-up in financials, while surging
prices in oil and other commodities boosted natural resource
companies on hopes the economic slump was waning.
The Dow Jones industrial average <> gained 74.96
points, or 0.86 percent, to 8,750.24. The Standard & Poor's 500
Index <.SPX> climbed 10.70 points, or 1.15 percent, to 942.46.
The Nasdaq Composite Index <> rose 24.10 points, or 1.32
percent, to 1,850.02.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)
