Jobless claims, ISM services reports could determine if markets keep their rally going.
September 4, 2003: 5:28 AM EDT
By Mark M. Meinero, CNN/Money Staff Writer
NEW YORK (CNN/Money) - Thursday's reports about employment and the service sector could help determine if U.S. stocks continue the late-summer runup that has put the major indexes at their highest points in more than a year.
At 5:30 a.m. ET, futures pointed to a mixed start for the equity markets.
The key reports of the day are the weekly jobless claims report, due before trading begins, and the Institute for Supply Management's August report on the services sector, scheduled after the markets open.
Jobless claims are expected to remain below, but still close to, the 400,000 mark that's seen as determining whether the economy is weak. The estimate for the week ended Aug. 30 is 393,000, down from 394,000, according to Briefing.com.
The ISM services index is forecast to decline to 62 in August from July's torrid 65.1. Even with such a drop, the sector would be seen remaining clearly in expansion mode.
Also due Thursday before the bell is the revised second-quarter productivity growth, which is seen at 6.4 percent versus the originally reported 5.7 percent. After trading begins, the government's measure of July factory orders is projected at 0.8 percent growth, a slackening of the 1.5 percent growth seen in June.
One earnings report of note due during the course of trading is specialty chip maker National Semiconductor, whose fiscal second-quarter profit is seen rising to 12 cents a share from 1 cent a year earlier, according to a consensus of analysts surveyed by Reuters Research.
For details of Wednesday's gains, click above.
Another factor in Thursday's markets: individual retailers are reporting sales for August, the key back-to-school period.
The Dow Jones industrial average begins the day at its highest level since June of last year, at 9,568.46, after gaining 0.5 percent Wednesday. The Nasdaq composite index is at a 17-month peak -- that's early April 2002 -- following a 0.6 percent advance (see chart for details).
Asian-Pacific stocks ended mixed Thursday, with Tokyo's Nikkei index snapping a four-session streak of gains. European markets were mixed in early trading. (Check the latest on world markets)
Among U.S. stocks trading in Europe, Microsoft (MSFT: Research, Estimates) shares were lower. The software maker warns that users of its Office program were at risk of having their computers taken over by an attacker unless they applied a patch to correct the problem.
Treasury prices gained in early trading, sending the 10-year note yield down to 4.57 percent from 4.59 percent late Wednesday. The dollar rose against the yen and euro.
Brent oil futures were unchanged at $27.74 a barrel in London, where gold continued its recent rally.
Among other stocks to watch Thursday is Pfizer (PFE: Research, Estimates). The world's largest drug maker lowered its 2003 earnings estimates late Wednesday, citing a change in inventory valuation related to its acquisition of Pharmacia. Pfizer shares gained 42 cents to $30.88 Wednesday.
Security software maker Symantec (SYMC: Research, Estimates) was raised to "neutral" from "underweight" by J.P. Morgan. The stock closed at $58.48 Wednesday, up 88 cents
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