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US STOCKS-Futures point higher after jobless claims fall

Published 08/26/2010, 09:09 AM
Updated 08/26/2010, 09:12 AM

* Jobless claims fall in latest week

* Central bankers converge on Jackson Hole

* 3PAR accepts raised bid from Dell

* Futures up: Dow 39 pts, S&P 4.4 pts, Nasdaq 10 pts (Updates with jobless claims)

By Ryan Vlastelica

NEW YORK, Aug 26 (Reuters) - U.S. stock index futures pointed to a higher open on Thursday as an unexpected fall in jobless claims helped boost sentiment on the weak labor market.

Weekly jobless claims declined more than expected to a seasonally adjusted 473,000 in the latest week, though a measure of underlying labor market trends rose to a nine-month high.

The report came a day after weak readings on durable goods and home sales underlined concerns about a double-dip recession.

"The market seems to have a more positive tone right now and is benefiting from the lowered expectations investors had," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.

McCain said problems persisted in the labor market, noting that "while overall layoffs continue to decline, we're still not seeing a marked pick-up in new hires."

S&P 500 futures rose 4.4 points and was 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 was up 39 points, and Nasdaq 100 futures added 10 points.

Central bankers from around the world will converge later Thursday at the Jackson Hole, Wyoming, mountain resort to assess the darkening economic outlook.

U.S. Federal Reserve Chairman Ben Bernanke is likely to discuss the uncertain prospects for the economy but isn't expected to give many clues about whether the Fed will pump more cash into the economy to keep the recovery going.

U.S. stocks staged a comeback on Wednesday, breaking a four-day losing streak as key technical support triggered bargain-hunting. That offset weak data showing July durable goods orders rose less than anticipated and new home sales slumped.

In merger news, 3PAR Inc accepted a raised buyout bid from Dell Inc that trumped an earlier bid from Hewlett-Packard Co. Shares of 3PAR, a data storage company, slid 0.8 percent to $26.55 in premarket trading.

Novell Inc is scheduled to report quarterly results after the market closes Thursday. The software maker is seen posting a slight decline in profit.

On the technology front, Apple Inc is expected to show off a snazzier line of iPods next week as speculation mounts that it may also unveil a new TV product. The stock edged up 0.7 percent to $244.61 premarket.

Also on tap for Thursday are the Chicago Federal Reserve Bank's July Midwest manufacturing report and the Kansas City Fed's August manufacturing report.

In Europe, shares bounced back from a five-week low on upbeat corporate results. The pan-European FTSEurofirst 300 was up 1 percent. The Nikkei index closed up 0.7 percent.

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