Stocks Futures Gain on Greek Hopes, Jobs Data
NEW YORK ( TheStreet) -- U.S. stock futures were pointing to a stronger open Thursday as the market grew more confident that Greece would complete a crucial debt restructuring deal and avoid a chaotic default.
Futures for the Dow Jones Industrial Average were jumping 59 points, or 72.6 points above fair value, at 12,900. Futures for the S&P 500 were up 8.7 points, or 9.5 points above fair value, at 1361, and futures for the Nasdaq were gaining 15.7 points, or 16.6 points above fair value, at 2624.
Stocks finished higher Wednesday following Tuesday's worst plunge of the year on the back of better-than-expected jobs data, news that the Federal Reserve may yet aid the economy and progress on Greece's debt restructuring.
In the U.S., the Labor Department reported that the number of Americans filing for first-time unemployment benefits rose by 8,000 to 362,000 last week from a revised 354,000 the preceding week. Analysts surveyed by Thomson Reuters expected weekly initial jobless claims for the week ended March 3 to fall to 350,000 from an originally reported 351,000. The four-week moving average was 355,000, an increase of 250 from the previous week's revised average of 354,750.
As a Thursday evening deadline for Greece to secure a debt swap agreement from at least 75% of its bondholders looms, roughly 60% have already signed up. Major banks and pension funds have been signing up for the debt swap at a good pace ahead of the 3 p.m. EST deadline, bringing Greece closer to an end to its debt drama. Some market chatter even suggests that over 75% of bondholders have already accepted the offer. The €206 billion debt restructuring deal, of course, is a crucial part of the country's ability to receive a €130 billion rescue package.
Growing confidence about Greece was assuaging eurozone debt contagion fears and spreading cheer throughout eurozone bond markets. Italian government bond yields have been dropping to their lowest levels since the middle of last year. Spanish yields have been pulling back sharply.
London's FTSE was rising 1.3%, and Germany's DAX was gaining 2.1%. In Asia, Japan's Nikkei Average finished stronger Thursday by 2.01% as Japan's economy was reported to have contracted a revised 0.2%, which was less than the prior fourth-quarter estimate. Hong Kong's Hang Seng index closed up 1.32%.
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In corporate news, McDonald's (MCD) shares were surrendering 3.3% to $96.90 after the fast-food chain reported a rise in February global sales at restaurants open at least 13 months of 7.5%, missing estimates. This, as European customers reduced their spending. An increase of 7.7% was expected by analysts polled by Thomson Reuters.