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US STOCKS-Futures rise as Treasuries steady, jobs data due

Published 12/09/2010, 07:26 AM
Updated 12/09/2010, 07:28 AM

* Treasuries steady, giving support to futures

* Weekly initial jobless claims expected at 8:30 a.m.

* Futures up: S&P 4.6 pts, Dow 33 pts, Nasdaq 5.25 pts

NEW YORK, Dec 9 (Reuters) - U.S. stock futures rose modestly on Thursday as Treasuries steadied after a jump in yields, while data on the labor market was expected later in the morning.

* Treasuries prices edged higher following a recent selloff that pushed benchmark yields to six-month highs on Wednesday. Higher bond yields make it more expensive for consumers and businesses to borrow, a potential problem for the still-fragile economic recovery.

* The weekly jobless claims report is on tap for 8:30 a.m. EST (1330 GMT) and is expected to show first-time claims improved slightly to 425,000 from 436,000 the week before. Wholesale inventories data for October is due at 10 a.m. EST (1500 GMT), and anticipated to gain 0.9 percent compared with an increase of 1.5 percent the month before.

* The jobless claims data will come on the heels of last week's larger nonfarm payrolls report that showed the economy added far fewer jobs than expected in November.

* The S&P 500 closed at 1,228.28 Wednesday right around a key resistance level that represents the 61.8 percent Fibonacci retracement of the 2007-2009 bear market slide, a key technical indicator. Decisive gains above this level could turn it into support for the index and open the way for more advances.

* S&P 500 futures added 4.6 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 33 points, while Nasdaq 100 futures rose 5.25.

* Shares of United Parcel Service Inc will be in the spotlight after its chief financial officer told a German newspaper the package deliverer plans to woo shareholders with a higher dividend and more share buybacks rather than use its strong cash flow for large acquisitions.

* A compromise plan by U.S. President Barack Obama to broadly extend tax cuts moved forward on Wednesday despite opposition from his own Democrats.

* Stocks edged higher Wednesday as gains in financial and technology stocks offset declines caused by a recent surge in bond yields.

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