Optimism is welling up on Wall Street after yesterday's setback, as traders await a slew of key domestic economic reports and also remain hopeful that all would be well on the European debt crisis front. European stocks are seeing some buoyancy amid strength in commodity prices and M&A news. If some key first tier economic reports such as the jobless claims and a private sector employment data come in better than expected, traders may temporarily push their European worries on the backburner. Chain store sales could also impact market movement.
As of 6:30 am ET, the Dow futures are rising 56 points and the S&P 500 futures are up 5.80 points, while the Nasdaq 100 futures are gaining 9.00 points.
Spanish financial worries generated strong selling pressure in the U.S. markets on Wednesday, sending stocks sharply lower. The mood was further dampened by a domestic housing report, which showed an unexpected drop in pending home sales for April.
On the economic front, The ADP U.S. private sector employment report is due at 8:15 am ET. The consensus expectations are for an addition of 154,000 jobs by the sector in May following an addition of 119,000 jobs in April.
The Labor Department is due to release its customary U.S. jobless claims report for the week ended May 26th at 8:30 am ET. Economists expect claims to remain unchanged at 370,000 in the recent reporting week.
The results of the Institute of Supply Management-Chicago's business survey for May are scheduled to be released at 9:45 am ET. Economists expect the business barometer index based on the survey to edge down to 56.1.
Additionally, the Bureau of Economic Analysis is due to release its preliminary estimate of first quarter U.S. GDP at 8:30 am ET. Economists expect GDP growth to be downwardly revised to 1.9 percent for the quarter.
The Energy Information Administration is also scheduled to release its weekly petroleum inventory report for the week ended May 25th at 11 am ET.
Federal Reserve Bank President Sandra Pianalto is scheduled to speak to the National Association for Business Economics, in Cleveland, on monetary policy and the economic outlook at 8:30 am ET.
In corporate news, TIVO (TIVO) reported a wider than expected first quarter loss on revenues of $67.8 million, above the $54.89 million consensus estimate. The company expects to report a loss for its second quarter, while its revenue guidance is slightly shy of estimates.
Zumiez (ZUMZ) reported a 13.7 percent jump in comparable store sakes for May. Meanwhile, Costco (COST) reported that its comparable store sales rose 4 percent in May, while net sales climbed 7 percent. Excluding the impact of gasoline prices, comparable store sales were up 6 percent.
Lions Gate (LGF) reported a fourth quarter loss of 17 cents per share compared to a profit of 34 cents per share last year. Revenues rose to $645.2 million from $376.9 million last year.
Coldwater Creek (CWTR) reported a first quarter loss of 20 cents per share, narrower than the loss of 32 cents per share last year. Net sales fell to $169.9 million from the year-ago quarter's $179.8 million. The loss was in line with estimates, while the revenues trailed expectations.
The Asian markets retreated, weighed by a negative lead from Wall Street overnight. Fears concerning Spain's banking system have been spreading like rampant fire, as hopes of the nation bailing out its banking system is fading, given the anemic economic outlook.
Japan's Nikkei 225 average opened notably lower and moved sideways in the morning before paring some of its losses thereafter. The index ended down 90.46 points or 1.05 percent at 8,543. Along with the European travails, the strength of the yen and a weak domestic industrial output data also hurt sentiment.
The All Ordinaries of Australia closed 15 points or 0.36 percent lower at 4,134, with energy stocks leading the declines. Material stocks also saw notable losses.
Hong Kong's Hang Seng Index closed down 60.70 points or 0.32 percent at 18,630, South Korea's Kospi retreated 0.08 percent and China's Shanghai Composite was down moderately lower.
On the economic front, Japanese industrial output rose 0.2 percent month-over-month in April, slightly lighter than expected. India's fiscal year fourth quarter GDP rose 5.3 percent year-over-year, slower than the 9.1 percent growth in the year-ago quarter, as manufacturing output contracted.
European stocks are seeing moderate to noteworthy gains, as M&A news and strength in beaten down commodities supported sentiment. Some positive domestic economic data also gave some reason to stay invested.
U.K.'s IT services firm Logica announced a deal to be bought by CGI Group for 1.7 billion pounds.
A government report showed that Germany's unemployment rate edged down 0.1 percentage points to 6.7 percent in April. A separate report showed that German retail sales rose for the second straight month.
by RTT Staff Writer
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