Futures point to early gains Thursday. Investors to consider jobless claims, Intel CEO comments.
August 21, 2003: 7:35 AM EDT
NEW YORK (CNN/Money) - U.S. stocks headed toward a higher open Thursday reflecting strength in international markets, gains in the dollar, and positive comments from Intel's CEO, ahead of a slew of economic news.
At around 7:15 a.m. ET, futures pointed to a higher start for the major indexes, before reports on initial jobless claims, leading economic indicators and the Philly Fed index.
Intel CEO Craig Barrett told Dow Jones newswires he saw a possible turnaround in personal computer sales. While this could be good for tech investors, it didn't seem to have much impact on Intel (INTC: down $0.11 to $26.36, Research, Estimates) shares, which edged up just 1 percent in European trade.
Data from the Semiconductor International Capacity Statistics group showing use of the world's chip factories rose above 85 percent -- considered a key level -- in the second quarter could also provide some support to the sector.
But on the downside, semiconductor design maker Synopsys (SNPS: down $0.81 to $68.19, Research, Estimates) could pressure the sector after it warned late Wednesday that its fourth-quarter earnings may miss current expectations.
In other tech news, telecommunications gear supplier JDS Uniphase (JDSU: down $0.06 to $3.19, Research, Estimates) said its chairman and chief executive, Jozef Straus, plans to retire, and will be replaced as CEO by Openwave Systems' (OPWV: up $0.05 to $4.45, Research, Estimates) chief operating officer Kevin Kennedy.
For details of Wednesday's pullback, click above
Deutsche Bank Securities started coverage of Dow Chemical (DOW: up $0.06 to $34.49, Research, Estimates) with a "hold" rating.
In the morning's earnings news, retailer Krispy Kreme (KKD: down $0.28 to $48.92, Research, Estimates) reported quarterly earnings that beat estimates and rose from a year earlier as the company opened more stores.
"Stocks in general have been trading near their highs but volume has been a real obstacle to move prices higher. It may still be early but it looks to me as if we will see an attempt to take Dow above 9,450," Tom Hougaard, an analyst at City Index told Reuters.
Jobless claims awaited
Stocks have been on an upswing of late amid signs that the economic recovery is finally starting to kick in and the morning's economic news will be scrutinized for confirmation of this.
The number of new Americans filing claims for unemployment is expected to have declined in the week ended Aug. 16 to 395,000 from 398,000 in the prior week, according to a consensus of economists surveyed by Briefing.com. But the report could be skewed somewhat by the blackout that knocked out power in an area from New York to Detroit.
The jobless claims report comes before the market open. Two other economic reports are due after the opening bell rings.
At 10 a.m. ET, the Conference Board issues its index of leading economic indicators for July. An increase of 0.4 percent is forecast, an improvement over June's 0.1 percent increase.
Around noon ET, the Federal Reserve Bank of Philadelphia comes out with its closely watched regional economic indicator. The index is expected to edge up to 10 from 8.3 in July.
U.S. stocks took a breather from the earlier gains this week during Wednesday's session. The Dow Jones industrial average, hurt by Hewlett-Packard's earnings disappointment, lost 0.3 percent. The Nasdaq composite index fared better, dropping a little more than a half-point. (see chart for details)
Asian stocks finished higher Thursday, with Tokyo's Nikkei index gaining 0.7 percent to a 13-month high. (Check the latest on world markets)
European markets were higher at midday. Pan-European indices, which had paused for breath on Wednesday after a two-week rally, turned higher again at midday, with the FTSE Eurotop 300 index gaining almost one percent to an eight-and-a-half month peak.
Among U.S. stocks trading in Europe, Goodyear Tire & Rubber (GT: Research, Estimates) was up nearly 5 percent. The tire maker said it has reached tentative agreement with unions representing 19,000 of its workers on a new three-year contract.
Treasury prices edged lower in early trading, sending the 10-year note yield up to 4.45 percent from 4.44 percent late Wednesday. The dollar gained against the euro, but was lower versus the yen.
Brent oil futures rose 25 cents to $29.09 a barrel in London after a U.S. government report showed crude and gasoline inventories remained tight. Gold was lower in early European trading.
After the close, look for earnings from retailers Gap (GPS: Research, Estimates) and Nordstrom (JWN: Research, Estimates), and TV delay device maker TiVo (TIVO: Research, Estimates).
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