Stock Futures Eye Rebound on ECB Stimulus, U.S. Data
NEW YORK ( TheStreet) -- Stock futures were driven higher Thursday by reassuring U.S. economic numbers and the European Central Bank's commitment to economic stimulus.
The European Central Bank, as expected, cut its benchmark rate by 25 basis points to a record low 0.5%, after holding the rate at 0.75% since July 2012.
"Our monetary policy stance will remain accommodative for as long as is needed," Mario Draghi, the president of the European Central Bank, said at a press briefing.
Outplacement firm Challenger, Grey & Christmas reported early Thursday that job cuts plunged to a four-month low of 38,121 in April as the economic slowdown that began late in the third quarter has yet to result in increased downsizing.
The Labor Department reported Thursday that initial jobless claims fell 18,000 to 324,000 in the week ended April 27. The four-week moving average on initial claims also fell, down 16,000 from the previous week. On average, economists expected weekly claims to rise to 345,000 last week.
The Census Bureau said that the U.S. trade deficit shrank to $38.8 billion in March from $43.6 billion in February, compared with expectations of a reduction to $42 billion.
Futures for the S&P 500 were rising 9.5 points, or 9.15 points above fair value, to 1,586.75. Stocks closed near session lows on Wednesday after the Federal Reserve policymakers said U.S. unemployment remains "elevated" and that "fiscal policy is restraining economic growth," adding that they are prepared to increase or reduce asset purchases as needed.
On Thursday morning, the FDA was convening an independent advisory panel to dissect data on tivozanib, Aveo Oncology's
Futures for the Dow Jones Industrial Average were gaining 85 points, or 84.05 points above fair value, to 14,721.. Futures for the Nasdaq were advancing 19.75 points, or 17.05 points above fair value, to 2,883.25.
In other U.S. economic releases, the Bureau of Labor Statistics said that nonfarm business labor productivity rose 0.7% in the first quarter vs. expectations of a 1.2% increase after falling by a upwardly-revised 1.7% in the fourth quarter. The agency said that unit labor costs rose 0.5% compared with expectations of a 0.7% rise after increasing by a downwardly-revised 4.4%.