US Markets

US stocks seen boosted by upbeat China PMI data


U.S. stock index futures pointed to a higher open on the first trading day of June, with the Dow and S&P 500 looking to extend their all-time highs from last week.

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On Friday, both the Dow and the S&P 500 closed at record highs to cap a fourth-straight monthly gain for the benchmark indexes. A slow-but-steady improvement in the U.S. economy has helped fuel the market's steady grind higher in recent weeks

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Adding to positive sentiment, China's factory activity increased at its fastest pace in five months in May, according to a report over the weekend. In addition, two surveys showed that home prices fell slightly from the previous month, adding to fresh signs of cooling in the property market.

"While the PMI data doesn't completely dispel China growth concerns, it certainly shows the mild stimulus measures it has taken recently have been gaining traction," said Stan Shamu, market strategist at IG in a morning note.

On the economic front, traders are looking ahead to data on construction spending and manufacturing at 10 am ET. Spending is seen up 0.6 percent in April while the Institute for Supply Management's May read on manufacturing is seen rising to 55.5 from 54.9.

Other economic data this week include reports on factory orders and car sales, as well as the widely-watched jobs report on Friday. Investors will also be looking to Europe as Mario Draghi confronts the threat of deflation, preparing to unleash an array of measures to jolt the economy and ignite prices.

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Apple holds its annual Worldwide Developers Conference in San Francisco Monday, with the iPhone maker expected to unveil new innovations such as home control software for the iPad and iPhone, as well as a new version of the iOS operating system. ( will be live blogging this event.)

Google ticked higher amid reports the search giant plans to invest more than $1 billion in a series of internet access satellites around the globe, according to the Wall Street Journal.

jumped percent on heavy premarket volume after the company said it was looking to sell or wind-down its cellular baseband business.

Zillow slumped after the real estate website operator's stock was cut to "sector perform" from "outperform" at Pacific Crest, which said it sees a less-attractive risk/reward profile and limited upside. RBC Capital also cut its rating on the stock to "sector perform" from "outperform."

Krispy Kreme is slate to report quarterly earnings after the closing bell.