MARKET SNAPSHOT: U.S. Stocks Set For Upbeat Day Ahead Of Claims Data, ECB Meeting
September 03 2015 - 05:29AM
Dow Jones News
By Sara Sjolin, MarketWatch
ECB meeting on tap before market open
Wall Street was set for a second straight day of gains on
Thursday, with futures comfortably in positive territory on the
back of an upbeat session in Asia, where the volatile Chinese
markets are closed for two days.
Investors were also waiting for U.S. jobless claims data, as
well as the latest policy decision from the European Central
Bank.
Futures for the Dow Jones Industrial Average climbed 51 points,
or 0.3%, to 16,381, while those for the S&P 500 index added
6.65 points, or 0.3%, to 1,953.50. Futures for the Nasdaq 100 index
gained 24 points, or 0.6%, to 4,284.
The indicated advances come after all three benchmarks closed
out Wednesday firmly higher
(http://www.marketwatch.com/story/dow-futures-jump-almost-100-points-as-us-stocks-look-set-for-rebound-2015-09-02),
after the Federal Reserve's Beige Book painted a more optimistic
economic picture (http://www.marketwatch.com/storyno-meta-for-guid)
of the U.S. economy than analysts had feared. The report soothed
worries about the possible impact of the slowdown in China, which
has taken a toll on markets in recent weeks.
Read: As investors flee China, they should consider India
(http://www.marketwatch.com/story/as-investors-flee-china-they-should-consider-india-2015-09-02)
On Thursday, stock markets in the world's second-largest economy
were closed for the WWII victory day parade
(http://www.marketwatch.com/story/china-to-close-stock-market-to-honor-world-war-ii-anniversary-2015-09-01),
providing "much desired respite from the economy and market that
has been at the heart of the elevated global volatility of late,"
said analysts at Accendo Markets in a note.
"Hopes [are] also rising that ECB President Draghi may signal QE
extension," they added.
The ECB is scheduled to announce its latest interest rate
decision at 1:45 p.m. in Frankfurt, or 7:45 a.m. Eastern Time, with
Mario Draghi's news conference set for 8:30 a.m. Eastern. With a
weaker inflation outlook and a stronger euro, speculation has risen
that the central bank boss will indicate the ECB is ready to pull
the trigger on more easing measures if necessary.
Read: 5 things to watch at Thursday's ECB meeting
(http://www.marketwatch.com/story/5-things-to-watch-at-thursdays-ecb-meeting-2015-09-02)
U.S. data: Weekly jobless claims are due at 8:30 a.m. Eastern
and forecast to have risen to 275,000 last week, from 271,000 the
week before, according to economists polled by MarketWatch.
At the same time, the trade deficit for July is due, expected to
have shrunk to $41.8 billion from $43.8 billion in June
(http://www.marketwatch.com/story/us-trade-gap-with-europe-soars-to-record-amid-greek-crisis-2015-08-05).
The ISM nonmanufacturing -- or services -- reading is slated for
10 a.m. Eastern and is predicted to come in at 58% in August, down
from 60.3% in July
(http://www.marketwatch.com/story/ism-services-index-surges-to-10-year-high-in-july-2015-08-05).
Investors and analysts are tracking data out of the U.S., trying
to gauge whether the indicators weaken or strengthen the case for a
rate hike in September. The highlight this week is Friday's closely
watched nonfarm-payrolls report, one of the key measures the Fed is
watching as it considers a rate increase.
Movers and shakers: Ahead of the market open, Campbell Soup
Co.(CPB) is forecast to report fourth-quarter earnings of 42 cents
a share, according to FactSet estimates.
Geron Corp.(GERN) surged 20% premarket after the biotech company
late Wednesday said the New England Journal of Medicine was going
to publish two papers showing positive results for its drug
imetelstat.
And in the banking sector, proxy advisory firm Glass Lewis &
Co. is recommending shareholders they vote against a board proposal
by Bank of America Corp.(BAC) that would let the bank's chief
executive, Brian Moynihan, keep the title of chairman. Bank of
America shares were 0.3% higher ahead of the bell.
Costco Wholesale Corp.(COST) could also be active after the
warehouse retailer said late Wednesday sales in stores open at
least a year grew significantly during fiscal 2015
(http://www.marketwatch.com/story/costco-same-store-sales-rose-significantly-in-2015-2015-09-03).
Other markets: Asian markets closed mostly higher, inspiring
gains across Europe's equity benchmarks as well. Markets in
Shanghai and Hong Kong were closed for a two-day holiday to mark
the 70th anniversary of the end of the World War II.
Crude oil inched higher, building on a 1.9% gain from Wednesday
(http://www.marketwatch.com/story/brent-back-below-50-as-oil-prices-keep-sliding-2015-09-02).
Gold wavered around the flat line, while the dollar traded mixed
against other major currencies.
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(END) Dow Jones Newswires
September 03, 2015 05:14 ET (09:14 GMT)
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