As stocks attempt to tack on day five to rally, some investors could chose to cash in instead.
September 4, 2003: 7:37 AM EDT
NEW YORK (CNN/Money) - Stocks looked to a flat to lower start Thursday, as some profit-taking pressure took hold while investors awaited reports on the services sector and unemployment claims.
Just before 7:30 a.m. ET, futures pointed to a flat to lower 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 weekly data precedes a closely watched report on monthly unemployment, set to be released Friday.
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.
Investors are keeping a close watch on economic reports, as they continue to hope for an economic recovery to take hold in the second half of the year. Traders said investors have come to expect the reports to show improvement, but need to see sharp increases in business and consumer spending, and big declines in unemployment, to jump back into stocks with full force.
Some corporate news could also influence trading Thursday.
One earnings report of note due during the course of trading is specialty chip maker National Semiconductor (NSM: Research, Estimates), 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.
Meanwhile, UBS upgraded its outlook for U.S. semiconductor equipment makers, boosting ratings on Applied Materials (AMAT: Research, Estimates), Novellus (NVLS: Research, Estimates), KLA-Tencor (KLAC: Research, Estimates), among others, to "buy."
Pfizer (PFE: Research, Estimates) lowered its 2003 earnings estimates late Wednesday, citing a change in inventory valuation related to its acquisition of Pharmacia. Shares of the drugmaker 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.
Meanwhile, Merrill Lynch upgraded Network Associates (NET: Research, Estimates) to "buy" from "sell," citing an improved outlook. Shares of the anti-virus software provider rose 40 cents to $14.41 Wednesday
The firm also upgraded the radio and outdoor advertising industry to "positive" from "neutral to positive. "
DB Securities cut Eli Lilly (LLY: Research, Estimates) to "hold" from "buy" in a research note dated September 3. Shares of the pharmaceutical company slid $4.70 to $62.10 Wednesday.
Also Thursday, individual retailers planned to report sales for August, the key back-to-school period. American Eagle (AEOS: Research, Estimates) and Costco (COST: Research, Estimates) were among those companies who said sales rose at their stores opened for at least a year.
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 morning trading there. (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 rose 8 cents to $27.58 a barrel in London, where gold prices retreated
O Clubeinvest.com informa que nenhuma da informação
aqui facultada deverá ser entendida como conselho ou recomendação
de qualquer tipo de transacção ou investimento.
