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Futures narrowly mixed; Euro debt remains a worry
Stock futures narrowly mixed as Greek debt problems still a worry; ahead of weekly jobs report


Buzz up! 0 Print..Topics:Currencies.Stephen Bernard, AP Business Writer, On Thursday May 6, 2010, 8:05 am
NEW YORK (AP) -- Stock futures traded in a narrow range Thursday on persistent investor worries about whether a Greek debt crisis will spread across Europe.

European markets rose slightly, though investors remain concerned about whether the debt problems will upend a global economic recovery.

The euro is extending its decline against the dollar, a sign that investors are not sure whether a Greek bailout will stem the mounting problems. The euro is at its lowest level against the dollar in 14 months.

Greece is trying to tap a $144 billion aid package from the 15 other countries that use the euro and the International Monetary Fund. The nation needs access to an initial portion of the money by May 19 to cover $11.6 billion in debt payments, or else it will likely default.

Even if Greece gets the money it needs, there are still worries that would be only a temporary fix to a growing debt problem across the continent, and others like Portugal and Spain will eventually need similar rescues.

The European Central Bank is meeting Thursday and expected to discuss the growing debt problems.

European debt concerns have been overshadowing signs of a U.S. economic recovery in recent days. Investors will get reports Thursday that are expected to show initial claims for jobless benefits fell last week and productivity continued to rise in the first quarter. Retailers are also reporting April monthly sales throughout the morning.

Ahead of the opening bell, Dow Jones industrial average futures rose 4, or less than 0.1 percent, to 10,838. Standard & Poor's 500 index futures rose 1.40, or 0.1 percent, to 1,165.30, while Nasdaq 100 index futures fell 1.25, or 0.1 percent, to 1,957.25.

The Dow has dropped 284 points over the past two days.

The Labor Department's weekly report on initial jobless claims is expected to show fewer people applied for unemployment benefits last week. Economists polled by Thomson Reuters predict claims fell to 440,000 last week, from 448,000 a week earlier.

It would mark the third straight weekly drop and be a positive sign heading into Friday's monthly jobs report. The unemployment rate likely held steady at 9.7 percent in April. High unemployment remains one of the key issues facing the U.S. economy as it continues to rebound.

A report on first-quarter productivity is expected to show a gain of 2.5 percent compared with the previous quarter. Productivity surged 6.9 percent in the fourth quarter.

Both reports are due out at 8:30 a.m. EDT.

Bond prices fell after rising steadily in recent days as investors sought safer investments. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.59 percent from 3.54 percent late Wednesday.

Gold and oil both rose.

Overseas, Britain's FTSE 100 rose 0.2 percent, Germany's DAX index rose 0.5 percent, and France's CAC-40 rose 0.6 percent. Japan's Nikkei stock average, which had been closed the past three days for holidays, fell 3.3 percent.