US pre-open: Stock futures jump as new earnings season begins

US stocks are expected to open higher on Monday as the new earnings season begins and as investors continued to weigh a strong non-farm payrolls report.

Futures for the Dow Jones Industrial Average rose 47 points to 18,085, while futures for the S&P 500 index increased 4.50 points to 2,125 and futures for the Nasdaq-100 index climbed 15.25 points to 4,532.25.

“US markets look set to open at their best levels this year with the S&P 500 close to its record high of 2,137 as the ripple out effect from Friday’s payrolls number looks set to percolate through to the start of a new week and the beginning of a new U.S. earnings season,” said Michael Hewson, chief market analyst at CMC Markets.

US equities advanced on Friday after the non-farm payrolls showed employers added 287,000 jobs in June, smashing forecasts for a 170,000 gain.

Many analysts said, however, that the strong jobs report is unlikely to persuade the Federal Reserve to raise interest rates any time soon in the wake of the UK’s Brexit vote and low inflation.

Fed officials may offer clues on the direction of central bank policy on Monday with Kansas City Fed President Esther George and Cleveland Fed President Loretta Mester due to speak later.

Elsewhere, Asian markets rallied after Japan Prime Minister Shinzo Abe declared victory in Sunday’s election, saying he would push ahead with Abenomics – his economic reform programme. The news fuelled speculation that Abe would introduce further stimulus measures to revive the flagging Japanese economy.

Meanwhile, oil prices fell as data on Friday from industry group Baker Hughes showed the number rigs looking for oil in the US rose by 10 to a total of 351, adding to concerns about the global supply glut.

West Texas Intermediate crude dropped 0.73% to $45.08 per barrel and Brent fell 0.62% to $46.47 per barrel at 1250 BST.

On the company front, the earnings season kicks off with aluminum heavyweight Alcoa Inc. releasing its second-quarter results.

Cintas Corp. is also due to report its earnings after the closing bell.

Banks report results later in the week with JPMorgan Chase & Co. the first of the major US lenders to post earnings on Thursday.