By Carla Mozee and Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures pointed to a higher
open Thursday for Wall Street, as investors took in rate cuts by
the European Central Bank and a weaker-than-expected report on U.S.
private sector employment.
The market will also get a snapshot from the housing sector with
a quarterly report from home builder Hovnanian Enterprises.
Futures for the S&P 500 index (SPU4) rose 5.30 points, or
0.3%, to 2,004.10, while those for the Dow Jones Industrial Average
(DJU4) gained 72 points, or 0.2%, to 17,101. Nasdaq 100 futures
(NDU4) gained 8.25 points, or 0.2%, to 4,079.50.
The S&P 500 index (SPX) and the Nasdaq Composite (RIXF) fell
Wednesday.
Market-moving economic news: The European Central Bank
unexpectedly lowered all its interest rates Thursday to fresh
record lows.
Thursday's key U.S. economic report is ADP's report on hiring in
the private sector, which showed a slowdown during August. The
country's largest payroll-processing firm said the private sector
added 204,000 jobs in August, which was below the 215,000 jobs
expected.
The ADP report will be followed by the 8:30 a.m. release of the
government's weekly update on jobless claims, which are likely to
stay near the 300,000 mark. That level suggests the labor market
remains on its growth track.
"Jobless claims could tick higher but healthy readings over the
past few weeks give us the confidence to believe that job growth
exceeded 200,000 last month," said Kathy Lien, managing director at
BK Asset Management, in a late Wednesday note. Economists expects
the creation of . That report comes Friday.
A look at the service sector will come from the Institute for
Supply Management at 10 a.m. EasternTime. Economists polled by
MarketWatch expect the ISM's index to come in at 57.2%. Service
providers employ more than 80% of American workers.
Figures on the July trade deficit and second-quarter U.S.
productivity are each slated for release at 8:30 a.m. Eastern
Time.
The slew of reports will lead up to a speech by Cleveland
Federal Reserve President Loretta Mester at 12:30 p.m. Eastern
Time. Mester, who is a voting member of the Fed policy committee,
will talk about her economic outlook at the Economic Club of
Pittsburgh. This will mark Mester's second public speaking event
since she took over as head of the Cleveland Fed on June 1, Goldman
Sachs noted.
Stocks to Watch: Hovnanian Enterprises (HOV) is expected to
report higher quarterly profit and sales, of 9 cents a share and
$563 million, respectively.
Joy Global (JOY) shares fell 2% ahead of the market open. The
heavy-machinery maker reported third-quarter adjusted earnings of
80 cents a share, short of the 84 cents a share expected by
analysts. Sales of $876 million were also below a consensus
forecast of $932 million.
Apple (AAPL) shares were down 0.2% premarket. On Wednesday, they
dropped more than 4% from all-time highs, a week ahead of the
company's highly anticipated iPhone event. (Read more about the
day's notable stock moves here:
http://www.marketwatch.com/story/tesla-picks-nevada-for-battery-plant-gannett-announces-layoffs-2014-09-04.)
Other markets: European stocks rose after the ECB decision.
Asian stocks ended mixed, with the Nikkei Average in Tokyo down by
0.3%.
Oil futures (CLV4) were modestly lower, and gold futures (GCZ4)
were little changed.
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