* Italy forms government after months of uncertainty
* Risk trade is on: Gold rises as dollar falls
* U.S. March personal income rose 0.2 pct
By Angela Moon
NEW YORK, April 29 (Reuters) - Wall Street was set for a
higher open on Monday, buoyed by the formation of a broad
coalition government in Italy which ended two months of
political uncertainty and boosted an appetite for risky assets,
as investors braced for major economic news this week.
U.S. stocks were likely to get a boost by European shares,
which edged up on Monday after Italy finally formed a
government, although analysts saw the gains petering out in the
The U.S. dollar fell against a major basket of currencies,
while commodities like spot gold rose.
"The market is moving up as the Italian political situation
is finally unlocked and that's offering some hope. You can see
that boosting risk trade here," said Peter Cardillo, chief
market economist at Rockwell Global Capital in New York.
In macroeconomic news, data showed U.S. Commerce Department
personal income rose 0.2 percent, slightly higher than expected.
Market reaction was muted.
Pending home sales data is due at 10:00 a.m. EDT and Dallas
Federal Manufacturing Survey index is scheduled at 10:30 a.m.
The all-important nonfarm payrolls report is due on Friday.
"We have key economic data, especially the employment report
later in the week, and we are also going to hear from the ECB
and the Fed later, so earnings takes a back seat this week,"
J.C. Penney Co Inc shares rose 3.3 percent in
premarket trade after the company confirmed reports from last
week that Goldman Sachs Group Inc will provide it with a
five-year, $1.75 billion financing package, the latest move by
the retailer to shore up its finances.
S&P 500 futures rose 6.1 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration of the
contract. Dow Jones industrial average futures rose 59
points and Nasdaq 100 futures added 12.75 points.
Wall Street was poised to start the last week of April
higher. So far, the S&P 500 is up 0.8 percent this month.
Weak U.S. growth data has raised expectations the Federal
Reserve will keep its pace of bond buying at $85 billion a month
during the FOMC meeting announcement on Wednesday, while the
European Central Bank (ECB) is widely expected to announce an
interest rate cut when it meets on Thursday.
On Monday, hotel, energy and financial services conglomerate
Loews Corp reported a 34 percent drop in first-quarter
profit due to higher impairment charges and a sharp fall in
investment income. The stock was unchanged in
Shares of online retailer Amazon.com Inc posted the
largest daily drop in 15 months after the company reported
results Thursday and was Friday's biggest drag on the S&P 500
and Nasdaq indexes. The stock was off 0.2 percent in premarket
U.S. stocks dipped in thin volume on Friday, though the
market had a strong week overall.