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Personal income flat, while spending drops off

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Stock futures were indicating a higher open and have build on gains as this morning's first round of economic data had personal incomes holding steady in April, while personal spending fell 0.1% in the latest month.

The Commerce department said personal incomes in April remained unchanged, which was inline with economists' forecast. Meanwhile, personal consumption slipped -0.1% in April and matched January's decline, but the biggest drop in spending since last September.

Some positives were taken from the spending numbers, as spending adjusted for inflation, rose 0.1% after increasing 0.4% in March. The somewhat positive response from futures traders looks to have come from the adjusted for inflation number as prices for products at the consumer level have fallen, consumer spending on total would look to decline, but when adjusted for the lower prices paid (inflation adjusted) spending would have risen fractionally.

Treasuries are seeing a relatively flat trade in the early part of their morning trade with the 5-year YIELD ($FVX.X) rising 1.2 basis points to 2.271%. The benchmark 10-year YIELD ($TNX.X) is edging fractionally higher at 3.341% as is the 30-year YIELD ($TYX.X) at 4.355%.

S&P futures (sp03m) currently trade higher by 4.2 points at 953.40. NASDAQ futures (nd03m) are gaining 7.5 points at 1,186.50, while Dow futures (dj03m) rise 22 points to 8,735.

Fair value for the S&P 500 today is $-0.10. That price will not change during the session. HL Camp & Company has their computers set for program buying at $0.98 and set for program selling at $-1.38. Fair value for the NASDAQ-100 today is $1.15.

Data storage switch maker McData (NASDAQ:MCDT) $11:08 is moving higher at $12.26 in pre-market trade after the company reported a first-quarter profit compared to a year-earlier loss after revenues jumped 60%. For its first quarter ending March, MCDT reported EPS of $0.06 on revenues of $103.2 million. The company said it expects Q2 EPS of $0.06-$0.07 on sales of $106-$110 million, which would be at the high end of consensus estimates of $0.05 and $106.6 million.

Microsoft (NASDAQ:MSFT) $24.40 edges up $0.20 at $24.60 after saying late yesterday that it would pay $750 million to AOL Time Warner (NYSE:AOL) $14.85 to settle a 16-month-long antitrust dispute as the two agreed to work together on Internet-based media. Share of AOL are gaining 3.3% to $15.35 over the New York ECN.

Jeff Bailey

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