By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures climbed on
Thursday, lifted by better-than-expected quarterly results and
upbeat eurozone data.
Weekly jobless claims rose last week, but remained below the key
300,000 level for the sixth straight week, reflecting the low level
of layoffs taking place in the economy.
Better-than-expected quarterly results from Caterpillar Inc., 3M
were bolstering futures for the Dow Jones Industrial Average
(DJZ4), which jumped 134 points, or 0.8%, to 16,560.
Investors await updates on the U.S. manufacturing sector later
this morning.
Futures for the S&P 500 (SPZ4) gained 14 points, or 0.8%, to
1,939. Futures for the Nasdaq-100 (NDZ4) jumped 30 points, or 0.8%,
to 3,980.
Dow futures before the deluge of corporate results surged by
more than 100 points after data firm Markit said the initial
October reading of its eurozone manufacturing purchasing managers
index reached a two-month high at 50.7, above expectations of a
reading at 50. The report offered some upbeat news at a time when
worries about slowing global economic growth have prompted
investors to sell off equities world-wide.
But the report also suggested manufacturers and service
providers don't expect a significant pickup in the pace of activity
in the coming months.
U.S. stocks on Wednesday finished lower, with the S&P 500
index (SPX) losing 0.7%, the Dow Jones Industrial Average (DJI)
down 0.9% and the Nasdaq Composite (RIXF) off 0.8%.
Data: The number of people who applied for U.S. unemployment
benefits rose by 17,000 last week to 283,000. Economists polled by
MarketWatch had expected claims to rise to a seasonally-adjusted
285,000 in the week ended Oct. 18. Markit will release its initial
October purchasing manufacturing index for the U.S. at 9:45 a.m.
Eastern Time.
The Federal Housing Finance Agency was slated to post a report
on home prices for August at 9:00 a.m., and the Conference Board's
leading indicators data are set for release at 10 a.m. Eastern.
Shares in Tractor Supply Co (TSCO) surged 11%, after it was
raised to strong buy from market-perform by Raymond James .
Earnings: Ahead of the opening bell, shares of Dow industrials
component Caterpillar (CAT) leapt 3.7%. The heavy-equipment maker
raised its earnings outlook for the year to $6.50 a share, from
$6.20, while keeping the midpoint of its revenue view unchanged.
Third-quarter adjusted earnings of $1.72 a share outstripped
expectations of $1.36 a share.
3M (MMM), another component of the Dow Jones Industrial Average,
said third-quarter earnings were $1.98 a share, above expectations
of $1.96 a share from a FactSet survey of analysts. Sales of $8.1
billion, however, were shy of Wall Street's estimate of $8.227
billion. Shares of the maker of Post-it notes and other industrial
goods rose 2.5%.
General Motors (GM.XX) posted earnings, excluding one-time
costs, of 97 cents a share, higher than projections of 95 cents a
share. GM rose 2.7%.
Cable company Comcast Corp. (CMCSA) said third-quarter profit
climbed 50%, benefitting from a one-time income-tax adjustment and
a boost in earnings at its NBCUniversal entertainment unit. Shares
rose 1.9% premarket.
Drug maker Eli Lilly & Co. (LLY) shares fell 1% after it
reported a 58% drop in third-quarter earnings and a 16% fall in
revenue, driven by patent expirations and competition from generic
medications.
Southwest Airlines Co. (LUV) reported third-quarter adjusted
earnings of 55 cents a share, more than Wall Street's estimate of
53 cents a share. Shares gained 2.9% in premarket trade. Southwest
stock gained more than 80% since the start of the year.
Under Armour (UA), which makes athletic apparel, reported
third-quarter profit and sales above expectations, but shares fell
5% in premarket trade after surging 51% so far this year.
Elsewhere premarket, shares of Yelp (YELP) dropped 12%. The
online review site late Wednesday posted better-than-expected
third-quarter results but issued a weak outlook.
After the bell, Amazon.com Inc. (AMZN) and Microsoft Corp.
(MSFT) will release financial reports.
Other markets: In Asia overnight, stocks in Tokyo and Hong Kong
finished modestly lower. European stocks were higher in a choppy
trade. Gold futures (GCZ4) fell and oil prices (CLZ4) edged up.
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