By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures pointed to gains at
the start of trading on Thursday, boosted by news of more easing
out of China, as investors awaited an update on housing starts and
weekly jobless claims.
Futures for the Dow Jones Industrial Average rose 56 points, or
0.3%, to 17,125, while those for the S&P 500 index (SPZ4) added
7.7 points to 2,001.40. Futures for the Nasdaq-100 index (NDZ4)
rose 15.25 points to 4,080.50.
China's central bank cut short-term borrowing costs for banks on
Thursday, in the same week as news of a cash injection into the
country's five biggest banks. For markets, this is a "massive
statement of intent," amid growth concerns for the country, said
Craig Erlam, market analyst at Alpari U.K.
"We know this has worked in the past, so there is no reason to
believe it won't work again, and the markets love it," Erlam
said.
Federal Reserve Chairwoman Janet Yellen will speak on asset
building for low- and middle-income households via prerecorded
video at 8:45 a.m. Eastern Time.
At 8:30 a.m. Eastern Time, data is expected to show the pace of
home construction to pull back in August from July's highest
reading since late 2013. Due at the same time, weekly jobless
claims are expected to dip from the previous week.
At 10 a.m. Eastern, the Federal Reserve Bank of Philadelphia
September monthly reading on regional manufacturers is due and
expected to weaken from August.
The Dow industrials (DJI) notched a record high on Wednesday,
though stocks flattened by the session's end. The Federal Open
Market Committee stuck to its view that it will keep short-term
interest rates near zero for a "considerable time" after it stops
big-scale purchases of bonds. Read: Fed will be quick about raising
rates, once it starts
(Also see: Credit Suisse sticks to stocks, but sees a correction
ahead
http://blogs.marketwatch.com/thetell/2014/09/17/credit-suisse-sees-sp-500-correction-coming-in-2015-but-sticks-to-stocks/?link=instory.)
Stocks to watch:Rite Aid Corp.(RAD) is tumbling 7% in premarket
after the drugstore chain slashed its outlook, blaming generic
drugs.
United Natural Foods Inc. (UNFI) is up 3% after earnings and an
outlook that topped Wall Street's forecast late Wednesday. See
After Hours roundup
Pier 1 Imports Inc. (PIR) sank 10% after earnings fell short of
hopes and the company cut its forecast for the year late
Wednesday.
Other markets: The FTSE 100 rose as Scottish voters headed to
the polls, with indications still pointing to a narrow victory for
unionists. U.K. retail sales rose at a faster pace in August, but
were driven by gasoline prices, suggesting inflationary pressures
remain weak, thus less pressure on the Bank of England to hike
rates.
European stocks also got a lift from China's cut in borrowing
costs. Japanese stocks climbed to an eight-month closing high, as
the yen(USDJPY) hit a six-year low against the greenback, aiding
export-related stocks.
The euro (EURUSD) held steady after the European Central Bank
allotted 82.6 billion euros in the first round of its new four-year
loans, though that take-up fell short. Gold prices (GCZ4) fell 1%,
pressured by a strong dollar.
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