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* ISM’s PMI manufacturing data expected at 10:00 a.m. ET
* Philip Morris rises on BofA Merrill Lynch upgrade
* McCormick gains on FY profit forecast raise
* McDonald’s drops on JPM comments
* Futures up: Dow 0.29%, S&P 0.32%, Nasdaq 0.38% (Adds comment, details; updates prices)
By Medha Singh and Arjun Panchadar
Oct 1 (Reuters) - Wall Street’s main indexes were headed for a strong open on Tuesday ahead of the release of manufacturing data as investors looked for fresh signs of domestic demand in the world’s largest economy amid softening global growth.
The ISM’s purchasing managers index (PMI) data, due at 10:00 a.m. ET (1400 GMT), is likely to show the manufacturing sector rebounded to 50.1 in September after contracting for the first time in 3-1/2 years to 49.1 in August.
It will come on the heels of euro zone data, which showed manufacturing activity in the bloc contracted at its steepest rate in almost seven years.
“If we look at some of the data out of either Asia Pacific or European zone, the U.S. economic data has certainly been the standout across the board,” said Art Hogan, chief market strategist at National Securities in New York.
The benchmark 10-year note yield ticked higher, helping shares of interest-rate sensitive lenders.
Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co, Goldman Sachs, Wells Fargo & Co and Morgan Stanley climbed between 0.6% and 1.1% before the bell.
Despite a prolonged U.S.-China trade war that poses the biggest risk to global growth, confidence in the domestic economy is one of the factors that has helped the benchmark S&P 500 climb 18.7% so far this year.
A crucial jobs report on Friday is expected to shed further light on U.S. economic growth. The Federal Reserve is also looking at these data to determine whether it should cut interest rates again this year.
At 8:44 a.m. ET, Dow e-minis were up 79 points, or 0.29%. S&P 500 e-minis were up 9.5 points, or 0.32% and Nasdaq 100 e-minis were up 29.75 points, or 0.38%.
McCormick & Co Inc rose 2% as the seasoning maker raised its full-year earnings forecast.
Philip Morris International Inc gained 1.4% after reports that Bank of America Merrill Lynch upgraded the cigarette maker’s stock to “buy” from “neutral.”
McDonald’s Corp dropped 1.4% as JP Morgan said the fast food chain’s third-quarter same-store sales would be softer than it initially thought.
Semiconductor stocks Analog Devices and Microchip Technology rose more than 2% after KeyBanc upgraded the chipmakers to “overweight”. Shares of peer Xilinx slipped 2% after the brokerage lowered its rating to “sector weight”.
As the final quarter of 2019 kicks off, investors will be focusing on a range of factors, beginning with the high-stakes Sino-U.S. trade talks in early October, corporate earnings and the Fed’s next policy meeting.
“Both sides (U.S. and China) have shown some flexibility and so there’s an incredible possibility that we have a bit of a truce or warming in the cold war on trade and I think that’s distinctly a market positive,” National Securities’ Hogan said. (Reporting by Medha Singh and Arjun Panchadar in Bengaluru; Editing by Arun Koyyur)