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US STOCKS-Futures point to higher open on Ireland optimism

Published 11/18/2010, 09:04 AM
Updated 11/18/2010, 09:12 AM
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* Jobless claims rise slightly in latest week

* GM to begin trading after historic IPO

* Futures up: Dow 84 pts, S&P 11.8 pts, Nasdaq 23.25 pts (Updates with jobless claims data, fresh prices)

By Ryan Vlastelica

NEW YORK, Nov 18 (Reuters) - U.S. stock index futures pointed to a rise of nearly 1 percent at the open on Thursday on expectations Ireland will get a giant loan to ease its debt crisis.

Ireland's central bank chief said he expected the country to receive tens of billions of euros in loans from European partners and the International Monetary Fund to help shore up its shattered banks and stabilize the economy.

U.S.-listed shares of Bank of Ireland climbed 10 percent to $2.38 in premarket trading, while the FTSEurofirst 300 index of top European shares was up 1.2 percent.

Concerns over European sovereign debt woes have weighed on equities in recent sessions, with the S&P 500 down nearly 4 percent since Nov. 5.

"They've moved toward a resolution, and it looks promising that one will be reached," said Michael Holland, who oversees more than $4 billion as chairman of private investment firm Holland & Co in New York. "There was concern that there wouldn't be a deal, and if we move away from the threat of a default there, the market will clearly really like it."

Futures barely moved after data showed new jobless claims rose slightly less than expected last week. The underlying trend remained tilted toward a gradual improvement in the labor market.

S&P 500 futures rose 11.8 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 added 84 points, and Nasdaq 100 futures rose 23.25 points.

The U.S. dollar fell 0.7 percent as investors, while crude oil futures gained nearly 2 percent and gold climbed more than 1 percent.

Adding to the positive sentiment, General Motors Co completed the biggest initial public offering in U.S. history on Wednesday, raising $20.1 billion after pricing shares at the top of its range on huge demand.

"There was always the opportunity for underwriters to screw this up, but it looks like a lot of appetite is there," Holland said. "This could've been a lump of coal, but instead it's a very pleasant outcome."

Sears Holding Corp fell 4.8 percent to $63 in premarket trading after its quarterly loss widened and sales fell. Office supplies chain Staples Inc said quarterly earnings and sales rose modestly.

Dell Inc, Gap Inc and Intuit Inc are also due to report.

In deal news, Cardinal Health Inc plans to buy privately held pharmaceutical distributor Kinray Inc for $1.3 billion.

Semiconductor equipment maker Verigy Ltd offered to buy smaller peer LTX-Credence Corp for about $422 million, while Walter Energy Inc was in talks on a deal for Western Coal Corp for $3.24 billion. and

LTX-Credence surged 34 percent to $8 premarket, while Walter fell 2.6 percent to $92.25.

U.S. stocks ended flat on Wednesday as a late-day selloff in banks offset positive news from retailers.

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