By Barbara Kollmeyer, MarketWatch Sears, Dollar General due to
report ahead of the bell
LONDON (MarketWatch) -- U.S. stocks were pointing to a flat
start for Wall Street on the heels of another record-breaking
action, with Thursday's session hinging on a European Central Bank
meeting and news conference, as well as on weekly jobless claims
data.
Futures for the S&P 500 index (SPZ4) were mostly flat at
2,073.60, while those for the Dow industrials (DJZ4) added 15
points to 17,912. Futures for the Nasdaq-100 index (NDZ4) gained
5.25 points to 4,315.75.
Both the S&P 500 (SPX) and the Dow industrials (DJI) bagged
record closes -- 48th and 33rd, respectively -- on Wednesday, with
markets lifted by upbeat services sector data and cyclical stocks
such as energy. But action was flat on Thursday, with some big
events looming for investors.
Looking for a Draghi dove: The ECB will hand down a policy
decision at 7:45 a.m. Eastern Time, followed by a news conference
from ECB President Mario Draghi at 8:30 a.m. Eastern. No policy
change is expected, but markets will be looking out for any dovish
comments from Draghi on whether the central bank is ready to kick
off more stimulus. Read a preview
"Draghi needs to be very, very dovish and hint at more ECB
action to keep stocks going up. I think he will be dovish, but
there will be no hints strong enough to meet investor
expectations," said Wouter Sturkenboom, strategist at Russell
Investments in London, in emailed comments. The Hindenburg Omen
cries bear market again
Weekly jobless clams are coming at 8:30 a.m. Eastern Time. The
data comes ahead of Friday's nonfarm-payroll data, a big event that
gives investors a reason to sit on the sidelines. "Jobs data needs
to come in the area of 180,000-230,000 to keep investors happy.
Higher is worse than lower," added Sturkenboom. Why economists say
400,000 jobs could be added
(Also see: The case for an imminent stock-market correction
http://www.marketwatch.com/story/correction-imminent-2014-12-02.)
Retailers on tap: Ahead of the opening bell, Barnes & Noble
Inc.(BKS), Dollar General Corp.(DG), Sears Holding Corp. (SHLD) and
Kroger Co. (ARO) will report. Read previews of Barnes & Noble
earnings, Sears earnings
AĆ©ropostale Inc.(ARO) shares fell 7% in late trading after the
retailer posted a disappointing fourth-quarter outlook.
Chinese stocks see best day in two years: The dollar(EURUSD)
hovered at a two-year high against the euro ahead of the ECB
meeting and remained at seven-year high against the yen. The ruble
fell further against the dollar as Russian President Vladimir Putin
gave a speech to lawmakers and officials in Moscow. He said Western
nations are holding back his country and warned of tough times
ahead.
European stocks treaded water as well, while Asian stocks
rallied on the heels of U.S. gains. China's Shanghai Composite
soared 4.3%, the biggest rise in two years, as retail investors
piled in and banks upgraded prospects for China's economy. Japan's
Nikkei 225 index added 0.9%.
Oil prices(CLF5) flattened, and gold(GCG5) was slightly
higher.
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