US STOCKS-Futures slightly up on optimism over solid jobs data

* Futures higher: Dow up 1 pt, S&P up 3.73 pts, Nasdaq up
21.5 pts

By Sweta Singh

July 10 (Reuters) – U.S. stock index futures were slightly
higher on Monday as the latest jobs report increased optimism
that a tightening labor market would keep the Federal Reserve on
course for a third rate hike this year despite benign inflation.

* Fed Reserve Chair Janet Yellen’s semi-annual testimony is
the key highlight of this week for investors looking for cues on
further rate hikes. She will testify on Wednesday and Thursday.

* The Federal Reserve raised its benchmark overnight
interest rate in June for the second time this year.

* Nonfarm payrolls increased by 222,000 jobs last month –
the second biggest increase this year – and topped economists’
expectations for a 179,000 gain.

* The dollar climbed to a two-month high against the
Japanese yen on Monday as a robust jobs data propped up U.S.
Treasury yields.

* Wall Street stocks closed on a high note on Friday, with
the S&P 500 posting its best gain in six sessions on the heels
of the payrolls report.

* Investors will be looking at second-quarter earnings
reports on Friday from big U.S. banks including JPMorgan Chase
, Wells Fargo and Citigroup.

* In a significant victory for the banking industry, the Fed
late last month approved capital plans from the 34 largest U.S.
banks to use extra capital for stock buybacks, dividends and
other purposes.

Futures snapshot at 6:54 a.m. ET (10:54 GMT):

* Dow e-minis were up 1 points, or 0 percent, with
13,650 contracts changing hands.

* S&P 500 e-minis were up 3.75 points, or 0.15
percent, with 87,504 contracts traded.

* Nasdaq 100 e-minis were up 21.5 points, or 0.38
percent, on volume of 18,727 contracts.

(Reporting by Sweta Singh in Bengaluru; Editing by Arun Koyyur)

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