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Stock futures inch higher ahead of open
Stock futures slightly higher as investors await weekly report on jobless claims


Buzz up! 0 Print..Topics:Stocks.Stephen Bernard, AP Business Writer, On Thursday May 13, 2010, 7:51 am
NEW YORK (AP) -- Stock futures rose slightly Thursday as investors avoid making any big bets before the government's weekly unemployment claims report.

Major indexes had rallied sharply Wednesday as traders returned their focus to signs of domestic economic improvement. The shift in attention comes after worries about debt problems in Europe began to ease.

The Labor Department is expected to report that initial claims for jobless benefits dipped last week. Economists polled by Thomson Reuters, on average, forecast first-time claims fell by 4,000 to 440,000.

While that would mark the fourth straight week of declines, claims would still be above levels that indicate sustained job growth. Economists estimate weekly initial claims need to fall below 425,000 to show employers are consistently adding new workers.

The report is due out at 8:30 a.m. EDT.

High unemployment remains a primary obstacle to a strong recovery. The unemployment rate jumped to 9.9 percent last month, even though employers added 290,000 jobs. Investors will want to see consistent monthly job growth and weekly drops in claims to become more confident that the labor market is significantly improving.

Ahead of the opening bell, Dow Jones industrial average futures rose 16, or 0.2 percent, to 10,892. Standard & Poor's 500 index futures rose 2.00, or 0.2 percent, to 1,171.70, while Nasdaq 100 index futures rose 1.25, or 0.1 percent, to 1,974.00.

European markets rose, but there is still some concern about the long-term health of the continent's economy. The euro again lost value compared to the dollar as investors remain unsure if countries like Greece and Spain that are saddled with big debt will be able to cut spending and still grow.

Worries about weak economic growth across Europe have pushed the euro to a new 14-month low against the dollar. The euro has lost about 12 percent of its value against the dollar since the beginning of the year.

Britain's FTSE 100 rose 0.7 percent, Germany's DAX index rose 0.9 percent, and France's CAC-40 rose 0.4 percent. Japan's Nikkei stock average rose 2.2 percent following Wednesday's big gains in the U.S.

Stocks surged Wednesday after a Commerce Department report said exports rose in March to their highest levels since late 2008. That bodes well for the manufacturing sector, which has been steadily improving in recent months. Further growth in the sector could lead to more hiring.

The Dow jumped about 149 points, helping to fully erase last week's losses.

Meanwhile, bond prices rose Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.57 percent from 3.58 percent late Wednesday.

Gold fell, a day after setting a record high. Oil also dropped.