CNBC
Compiled by Tom DiChristopher
IN THE NEWS TODAY
U.S. stock index futures indicated a higher open on Thursday, building on Wednesday's rally which saw major averages gain more than 1.5 percent by the close after a tumultuous week of trade. The flow of top-tier releases also continues ahead of Friday's key jobs report with the weekly data on unemployment and the latest read on the U.S. services sector. (CNBC)
European markets were mostly higher ahead of the European Central Bank meeting and announcement on monetary policy. The ECB is expected to discuss whether to extend its quantitative easing program beyond Sept. 2016, increase the pace of bond buying, and change the mix of asset purchases. (CNBC)
Chinese markets were closed for the country's military parade marking the end of WWII in the country. Japan's Nikkei snapped a four-day losing streak following a rally on Wall Street and as data showed the country's services sector expanded at the fastest pace in almost two years
The International Monetary Fund on Wednesday warned that China's slowdown, market volatility and collapsing commodity prices have increased global economic growth risk. The bank urged developed countries to continue accommodative monetary policy and encouraged some emerging nations to devalue their currency. (CNBC, Reuters)
The U.S. is pressing China to allow market forces to drive the value of the yuan up, not just down, U.S. Treasury Secretary Jack Lew told CNBC in an exclusive interview. Last month, China devalued the yuan, raising concerns about growth prospects for the No. 2 economy and roiling global equity markets. Lew told CNBC the extreme volatility of recent weeks is worth watching but not a major concern. (CNBC)
Chinese regulators on Wednesday levied fines against three companies that run stock trading platforms, including one owned in part by Alibaba founder Jack Ma. The firms were fined a combined 453 million yuan ($71.2 million) and top executives were warned for allowing "investors to conduct trading without providing real identities," the China Securities Regulatory Commission said. (CNBC)
Syngenta will sell its vegetable seeds business and buy back more than $2 billion of its stock. The pesticides company has been under pressure to return value to shareholders after rejecting a takeover bid from Monsanto. (Reuters)
Japan Display's CEO said Thursday its "biggest client," understood to be Apple, has increased orders ahead of an expected iPhone launch this month. It remains to be seen whether Apple is increasing display orders across the board, or simply shifting orders to Japan Display at the expense of other suppliers. (Reuters)
Proxy adviser Glass Lewis is the latest firm to advise Bank of America shareholders to vote against a board proposal to allow CEO Brian Moynihan to make permanent his temporary role as chairman. Glass Lewis said the bank had not provided "sufficient rationale" to convince shareholders to reverse an earlier vote to keep the roles separate. (WSJ)
China has for the first time sent Navy ships into international waters in the Bering Sea off Alaska, the Pentagon said Wednesday. The arrival of coincides with President Barack Obama's tour of Alaska. White House spokesman Josh Earnest said no threatening activity had been detected but China's intent remained unclear. (Reuters)
Meanwhile, Chinese President Xi Jinping has announced the largest cuts in military personnel in nearly two decades. China will reduce its more-than-2-million-person military ranks by 300,000, the premier said Thursday, the same day the country held a massive military parade. (NYT)
BY THE NUMBERS
Today's economic data will be led by weekly jobless claims at 8:30 a.m. ET. Consensus estimates see a rise in first-time unemployment insurance claims to 274,000 from the previous week.
The read on the U.S. trade deficit for July is also out at 8:30 a.m. The deficit is seen contracting to $42 billion from the previous month.
The August ISM nonmanufacturing index is due out at 10 a.m. Analysts expect the read on the nation's services sector to decrease to 58.4 from last month's 10-year high of 60.3.
Earnings due include Medtronic, Campbell Soup, Ciena, Joy Global, and Lands' End before the bell and Cooper Cos. after the close.
STOCKS TO WATCH
Tesla is among the day's stocks to watch. CEO Elon Musk tweeted Wednesday that the electric car maker will begin taking pre-orders in March for its entry-level Model 3, which will start at $35,000.
In its first earnings report since going public, fitness center operator Planet Fitness reported second-quarter profit of 13 cents a share, topping estimates by a penny.
Five Below reported earnings of 13 cents a share, in line with expectations and revenue of $182 million came in below estimates of $185 million. Comparable store sales rose 3 percent, versus expectations of a 4.5 percent increase, and its third-quarter outlook was weak.
Lannett is buying a U.S. unit of Belgian drug maker UCB for about $1.2 billion to expand its specialty generic drugs portfolio.
