Stocks poised for modest gains at open
NEW YORK — Stock futures are rising modestly Thursday as investors look to continue the market’s latest leg of the rally.
Major indexes have steadily risen throughout the week on signs the economy is recovering and exiting a long-running recession. Reports on housing starts and weekly jobless claims Thursday morning will provide investors with further insight into just how far the economy has rebounded from its depths earlier in the year.
Overseas markets rose Thursday as investors globally are becoming more confident in an economic rebound worldwide.
The Labor Department is expected to say the number of workers filing for unemployment benefits for the first time crept slightly higher last week to 555,000 from 550,000, according to economists polled by Thomson Reuters.
The number of people remaining on unemployment also likely edged higher to 6.1 million from 6.09 million.
Unemployment is considered a lagging indicator as job recovery often follows a broader economic rebound because businesses want to be confident in growth before adding new workers.
The unemployment report is due out at 8:30 a.m. EDT.
Aside from the weekly jobless claims report, investors are also awaiting the latest data on housing starts.
Economists predict construction of new homes and apartments likely grew by 3.3 percent in August to a seasonally adjusted annual rate of 600,000. Building permits, seen as a strong indicator of future activity, are expected to have risen 3.6 percent to an annual rate of 580,000 units.
A collapsing housing market in 2007 — with mortgage defaults rising sharply and home prices and sales tumbling — was a key driver of the recession. Recent reports on the sector have shown the housing market is beginning to recover, which is considered one of the primary drivers needed for renewed growth.
The Commerce Department releases the report at 8:30 a.m. EDT.
Ahead of the opening bell, Dow Jones industrial average futures rose 25, or 0.3 percent, to 9,811. Standard & Poor’s 500 index futures rose 2.10, or 0.2 percent, to 1,065.60, while Nasdaq 100 index futures rose 3.50, or 0.2 percent, to 1,721.25.
Major indexes rose again Wednesday after a strong report on industrial production raised hopes the economy is strengthening. The Federal Reserve said the nation’s industrial output jumped 0.8 percent in August, the second consecutive month of improvement.
The Dow jumped 108 points to reach another high for the year. It was the Dow’s eighth day of gains in the last nine sessions.
Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.46 percent from 3.48 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.10 percent from 0.09 percent late Wednesday.
The dollar fell against other major currencies, while gold prices rose.
Overseas, Japan’s Nikkei stock average rose 1.7 percent. In afternoon trading, Britain’s FTSE 100 rose 0.8 percent, Germany’s DAX index gained 0.5 percent, and France’s CAC-40 rose 0.5 percent.
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