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US STOCKS-Data to lift Wall St at open; Geithner awaited

Published 06/18/2009, 09:18 AM
Updated 06/18/2009, 09:25 AM
NDX
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* Claims data underpin economic recovery hopes

* Philly Fed on tap; RIM's results after the close

* Futures up: S&P +3.20 pts; Dow +28 pts; Nasdaq +3.25 pts (Recasts first paragraph, updates prices)

By Ellis Mnyandu

NEW YORK, June 18 (Reuters) - U.S. stocks headed for a slightly higher open on Thursday as a weekly government report showing a steep drop in the number of people staying on jobless aid underpinned hopes that the economic slump was easing.

Even though initial claims for benefits were higher-than-expected, continued claims posted their first drop since January, to 6.69 million from a revised 6.84 million the previous week, and marked the largest one-week drop in that series since November 2001.

"The surprise was in the drop in continuing claims, the first decline since the beginning of the year. That's going to be where the good news for the market is found," said Dan Greenhaus, market analyst at Miller Tabak & Co in New York. "I think this is going to be good for the market, but only in the short-term."

S&P 500 futures rose 3.20 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were up 28 points, while Nasdaq 100 futures climbed 3.25 points.

Besides focusing on the data, investors will also look for what reception Treasury Secretary Timothy Geithner will get from lawmakers when he testifies before two Congressional panels on the Obama administration's proposed financial regulatory reform.

With the battered financial system still on the mend, investors are waiting to see if any of the proposed measures encumber the sector's recovery.

Geithner's testimony before the Senate Banking Committee is due to start at 9:30 a.m. (1330 GMT). His testimony before the House Financial Services Committee is set for 1 p.m. (1700 GMT).

A June gauge of manufacturing in the U.S. Mid-Atlantic region, the Philadelphia Fed business index, is scheduled for release at 10 a.m. (1400 GMT), with a Reuters survey predicting a reading of minus 17.0 versus minus 22.6 percent in May.

The Conference Board is also set to release its May index of leading indicators, a forward-looking measure of the U.S. economy, which is expected to show an increase of 0.9 percent from April's rise of 1.0 percent.

Research In Motion is scheduled to post quarterly results after the bell, putting the BlackBerry maker and technology bellwether in the spotlight.

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