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US STOCKS-Stock futures little changed; initial claims on tap

Published 10/07/2010, 07:52 AM
Updated 10/07/2010, 07:56 AM

By Chuck Mikolajczak

NEW YORK, Oct 7 (Reuters) - U.S. stock index futures were little changed on Thursday ahead of weekly jobless claims data as investors sought insight into the strength of the economic recovery before Friday's key employment report.

* Analysts expected initial jobless claims to show a slight rise to 455,000 for the week ended Oct. 2 from the previous 453,000, surveyed by Thomson Reuters. Continuing claims are expected to show a dip to 4.45 million. The data is scheduled for release at 8:30 a.m. EDT

* The number is a precursor for Friday's closely watched non-farm payroll report from the Labor Department, which is expected to show companies added 75,000 jobs in September.

* "The claims number is an appetizer for tomorrow's number -- payroll numbers tomorrow will play a great part in the decision-making process, it is a highly anticipated number," said Andre Bakhos, director of market analytics at Lek Securities in New York.

* "With the recent bout of better-than-expected economic numbers helping to bolster the market, the market is taking a pause before earnings season kicks into gear."

* Alcoa Inc is due to kick off the third-quarter earnings season after the closing bell. The U.S. aluminum group was expected to post a modest third-quarter profit, but the main focus will be on its forecast for rising metal prices, which would send earnings surging in the final quarter.

* Retailer stocks will be in focus, with retailers are expected to post modest sales gains for September on cautious back-to-school shopping and aggressive month-end promotions from department stores looking to clear inventory ahead of the all-important holiday shopping season.

* Aside from Alcoa, Micron Technology Inc is due to report after the close.

* PepsiCo Inc dipped 2.8 percent to $66.21 after it trimmed its profit forecast.

* S&P 500 futures rose 0.4 points and were slightly 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 lost 18 points and Nasdaq 100 futures slipped 0.75 points.

* European shares turned positive in mid-morning trade on Thursday in a choppy session as investors awaited interest rate decisions and policy indications from the Bank of England and the European Central Bank.

* Asian stocks steadied after hitting a two-year high, capped by weakness in the technology sector, while the dollar fell ahead of the U.S. payrolls report.

* Technology shares slumped Wednesday on worries about demand for semiconductors and data storage, while the broader market was hamstrung by a poor reading on private-sector employment and speculation about further quantitative easing from the Federal Reserve.

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