Stocks head to higher open
Investors, who shrugged off inflation concerns to send stocks broadly higher Wednesday, are awaiting two key reports due out at 10 a.m. EST. The hope is that both are upbeat enough to reassure investors that the U.S. economy isn't falling into a recession, yet show enough weakness to motivate central bankers to implement furthter rate cuts when they meet March 18.
The Conference Board's gauge of leading economic indicators is expected to show a slight dip last month. The report is designed to predict where the U.S. economy is headed in the next three to six months.
Meanwhile, the Philadelphia Federal Reserve's February manufacturing index is expected to rebound from January's six-year low while still showing declining business activity.
Traders are already pricing in another interest rate cut -- perhaps by up to 50 basis points -- after minutes from the Fed's last policy-setting meeting indicated central bankers will remain vigilant. The Fed forecast slower growth and continued risks to the economy from housing and credit markets.
Stocks also are expected to benefit from a sharp rise in both European and Asian markets. Investors overseas were optimistic amid a rally in commodities and after Wednesday's 90 point rise in the Dow Jones industrial average.
Dow futures on Thursday rose 62, or 0.58 percent, to 12,491. Standard & Poor's 500 index futures rose 6.80, or 0.50 percent, to 1,365.80, and Nasdaq 100 futures added 17.25, or 0.96 percent, to 1,806.50.
Bond prices were little changed. The yield on the 10-year Treasury note, which moves opposite its price, fell to 3.88 percent from 3.89 percent late Wednesday.
Investors will also be keeping an eye on oil prices, which held near $100 a barrel after hitting a record overnight. Light, sweet crude for April delivery fell 86 cents to $98.84 a barrel in pre-opening trading on the New York Mercantile Exchange.
Gold and platinum also jumped to record highs overnight. The dollar dipped slightly against the euro and yen.
The markets had little reaction to a Labor Department report that showed the number of U.S. workers filing new claims for unemployment benefits fell last week. However, claims lasting more than one week rose, suggesting idled workers are staying unemployed longer.
In corporate news, there was further evidence that the global credit crisis is not near an end. French bank Societe Generale SA said a trading scandal and write-downs linked to the crisis led to a loss in the fourth quarter. The bank lost $4.91 billion, compared with a $1.73 billion profit during the same period of 2006.
MBIA Inc. is expected to be in focus after activist shareholder William Ackman's late Wednesday opposed a plan that struggling bond insurers be split into two companies. The company said Ackman, a hedge fund manager, stood to benefit from negative bets on the stock.
Technology stocks might get a boost after Citigroup upgraded Cisco Systems Inc. The biggest U.S. maker of computer-networking equipment was upgraded to "buy" from "hold" because of attractive valuations and hopes that a slowdown this year won't be as steep as first expected.
Also, Blackberry maker Research In Motion Ltd. raised its outlook for fourth-quarter subscriber additions by about 15 percent to 20 percent, citing the popularity of smartphones in the holiday selling season.
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