Stock Futures Pare Gains After GDP Data
NEW YORK (TheStreet) -- Stock futures were paring gains Thursday after investors weighed a smaller-than-expected revision of fourth-quarter gross domestic product data against better-than-anticipated jobless claims numbers.
Futures continued to point higher though, even as the sequestration deadline in the U.S. loomed, amid indications of continued global central bank support.
"U.S. equity markets thus far have been resilient to political developments in Italy and looming federal spending sequestration, due to take effect on Friday," noted Bricklin Dwyer, an economist at BNP Paribas.
Futures for the Dow Jones Industrial Average were up 2 points, or 3.63 points above fair value, at 14,062. Futures for the S&P 500 were up 1.25 points, or 2.46 points above fair value, at 1517. Futures for the Nasdaq were up 4.5 points, or 4.34 points above fair value, at 2745.
Major U.S. stock averages surged Wednesday, with the Dow within striking distance from its all-time high, on a raft of good economic data and as Federal Reserve Chairman Ben Bernanke signaled ongoing support for accommodative monetary policies.
The Labor Department said initial jobless claims in the week ended Feb. 23 were 344,000, a decrease of 22,000 from the previous week's upwardly revised 366,000. The four-week moving average was 355,000, a decline of 6,750 from the previous week's 361,750.
Continuing claims in the week ended Feb. 16 were 3.074 million, a fall of 91,000 from the preceding week's upwardly revised level of 3.165 million.
Economists, on average, predicted initial jobless claims of 360,000 and continuing claims of 3.15 million.
The Bureau of Economic Analysis' second estimate on fourth-quarter gross domestic product was an increase of 0.1% versus a decrease of 0.1% in the previous estimate. Economists were expecting a revised increase of 0.5%.
At 9:45 a.m. EST, the Chicago PMI for February is expected to show a tick down to 54 from 55.6.
Fed Governor Sarah Bloom Raskin speaks at Atlanta Fed's Banking Outlook Conference at 12:30 p.m.
Overseas markets were mostly higher Thursday amid confidence that global central banks will continue to lend support to the economy. European Central Bank President Mario Draghi also said that he anticipates accommodative policies to continue.