By Barbara Kollmeyer, MarketWatch

But strategist says watch for 'Bearmageddon'

U.S. stock futures pointed to gains on Monday, taking some inspiration from a global market rally as investors continued to digest weak jobs data out of the U.S.

Meanwhile, a Federal Reserve official said an interest-rate increase could still go ahead this year, as the labor-market weakness spurred speculation the U.S. central bank won't hike until 2016.

Extending earlier gains, futures for the Dow industrials rose 93 points, or 0.6%, to 16,470 on Monday, while those for the S&P 500 index added 10.4 points, or 0.5%, to 1,953.50. Futures for the Nasdaq-100 index rose 29 points, or 0.7%, to 4,290.

The gains followed the sharpest reversal in four years on Friday (http://www.marketwatch.com/story/us-stock-futures-rise-ahead-of-jobs-data-that-could-usher-in-a-rate-increase-2015-10-02) as investors brushed off jobs data that came in surprisingly weak. The S&P 500 index closed up 1.4% to 1,951.36 on Friday, for a gain of 1% for the week, while the Dow industrials surged 200.36 points, or 1.2%, to 16,472.37. The DJIA traded in a 459-point range on Friday, the biggest swing since Oct. 4, 2011.

Asian markets (http://www.marketwatch.com/story/china-stimulus-hopes-push-hong-kong-shares-higher-2015-10-05) picked up the baton from Wall Street. On Monday, the Nikkei 225 index gained 1.6%, while the Hong Kong Hang Seng Index surged 1.8%. In Europe, the Stoxx Europe 600 jumped more than 2%.

Some risk appetite returned after Friday's 142,000 September payrolls number (http://www.marketwatch.com/story/us-economy-creates-just-142000-new-jobs-in-september-2015-10-02) fueled the view that an interest-rate hike from the Federal Reserve is off the table for this year. A downgrade from the World Bank for China helped fueled some stimulus hopes for that country (http://www.marketwatch.com/story/china-stimulus-hopes-push-hong-kong-shares-higher-2015-10-05).

Investors were also eyeing a sweeping Trans-Pacific Partnership trade agreement, said to be nearing completion. The trade deal between the U.S. and 11 countries around the Pacific would lower barriers to goods and services (http://www.marketwatch.com/story/trans-pacific-partnership-trade-deal-nears-agreement-2015-10-05).

'Bearamageddon' fears: Still, some strategists doubt U.S. stocks can keep making gains. Michael O'Rourke, chief market strategist at JonesTrading, said in a note that momentum and short covering were likely the only reasons the market rallied on Friday.

"The problem is that absent a change in the fundamental drivers behind the weekend, momentum and short covering only takes the market so far," he wrote. And when the S&P 500 is rallying alongside the dollar index, investors should "question the validity of the move."

Jones said any further deterioration of economic data should put investors on "Bearmageddon watch -- looking for indications the economy is rolling over while Fed policy is trapped at the zero bound."

Rosengren says a hike still in play: In an interview with MarketWatch (http://www.marketwatch.com/story/embargoed-until-1201-am-monday-2015-10-05) published on Monday, Boston Fed President Eric Rosengren said the September employment report was "weak," but by itself doesn't preclude a rate increase. The central bank will need to see if it was a one-off, or more of a "broader pattern," he said.

"If this is an anomalous report, then, if the data came in sufficiently, I would be comfortable possibly raising rates by the end of the year," said Rosengren.

Read: Poor jobs report puts dark cloud over U.S. economy (http://www.marketwatch.com/story/poor-jobs-report-puts-dark-cloud-over-us-economy-2015-10-04)

The only data of note for Monday is the Institute for Supply Management's nonmanufacturing index for September, which will be released at 10 a.m. Eastern Time.

Stocks to watch: Shares of American Apparel Inc.(APP) were down 24% in thin premarket trading after the company filed for bankruptcy protection on Monday (http://www.marketwatch.com/story/american-apparel-could-file-for-bankruptcy-as-soon-as-monday-2015-10-05). The struggling clothing retailer plans to restructure debt, but wouldn't say whether stores would close.

Activist shareholder Nelson Peltz's Trian Fund Management LP said it has accumulated a $2.5 billion stake (http://www.marketwatch.com/story/activist-firm-trian-takes-25-billion-stake-in-general-electric-2015-10-05) in General Electric Co.(GE), making it one of the company's top shareholders, with around a 1% stake. GE shares were up 2.5% in premarket trading.

Shares of mining and commodities giant Glencore(GLEN.LN) (GLEN.LN) surged as much as 71% in Asia, then added another 10% in Europe amid asset-sale speculation (http://www.marketwatch.com/story/glencore-jumps-ftse-100-gains-for-fourth-day-2015-10-05).

Also read: Glencore oil deals could bite banks (http://www.marketwatch.com/story/glencore-oil-deals-could-bite-banks-2015-10-05)

Alcoa Inc.(AA) will unofficially kick off third-quarter earnings season on Thursday (http://www.marketwatch.com/story/pepsi-alcoa-shift-focus-to-results-as-corporate-earnings-season-begins-2015-10-04). Ahead of that, PepsiCo. Inc(PEP) will report on Tuesday.

Other markets: The dollar slipped back, which allowed oil prices to rise 57 cents to $46.11. Gold fell. Chinese markets were closed for a holiday.

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(END) Dow Jones Newswires

October 05, 2015 07:02 ET (11:02 GMT)