This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock Futures Pare Gains as ECB Bond-Buying Plan Unfolds


NEW YORK ( TheStreet) -- U.S. stock futures were paring gains Thursday as investors keyed in on the details of the European Central Bank's bond-buying plan, which was being revealed at a press conference by ECB President Mario Draghi.

Reports showing that the health of the labor market in the U.S. was stronger than expected was helping stocks hold gains.

Futures for the Dow Jones Industrial Average were rising 65 points, or 79.52 points above fair value, at 13,115. Futures for the S&P 500 were up 7.1 points, or 8.36 points above fair value, at 1411. Futures for the Nasdaq were up 12 points, 13.3 points above fair value, at 2779.

Draghi said that the bond purchases will all be sterilized and unlimited in size and that the central bank will publish its holdings by country every month.

The program will extend to bonds with maturities of up to three years and there will be no cap for yields.

He also asserted that if governments do not comply with the stringent bailout terms, the ECB will stop buying its bonds.

The euro was weakening as details of the bond-buying plan were revealed.

The ECB announced earlier Thursday that it would leave its benchmark rate unchanged at 0.75%.

U.S. stocks finished mixed Wednesday as traders mostly stood pat ahead of the ECB policy meeting.

The ADP report Thursday showed that employment in the U.S. nonfarm private business sector rose to 201,000 in August, up from an upwardly revised 173,000 in July. Economists forecast that private-sector employment fell to 143,000 last month.

The Labor Department said that initial jobless claims for the week ended Sept. 1 fell by 12,000 to 365,000, and that the four-week moving average rose 250 to 371,250.

Continuing claims for the week ended Aug. 25 fell to 3.322 million from 3.328 million the prior week.

Economists predicted that initial jobless claims would fall to 373,000 and that continuing claims would dip to 3.3 million.

The Institute for Supply Management is predicted to say later Thursday that its ISM Non-Manufacturing Index fell in August to 52.4 from 52.6.

The FTSE in London was drifting higher by 0.57%, while the DAX in Germany was up 1.31%.

The Hong Kong Hang Seng index finished up by 0.34% and the Nikkei in Japan closed up 0.01%.

The benchmark 10-year Treasury was down 14/32, raising the yield to 1.642%. The greenback was down 0.14%, according to the dollar index.

October crude oil futures were up $1.15 at $96.51 a barrel and December gold futures were higher by 16 cents at $1,710 an ounce.

On the corporate front, Amazon (AMZN - Get Report) has a major event planned in Santa Monica, Calif., on Thursday. The company hasn't disclosed what it will say but it's expected to unveil a new Kindle Fire. It's also likely to announce the newest versions of its line of Kindle e-readers, according to reports.

Supervalu (SVU - Get Report) plans to close about 60 stores. The grocer said Wednesday it would close most of the "underperforming or non-strategic stores" before Dec. 1.

The company suspended its dividend in June and said it was reviewing its options with financial advisers, including a possible sale of the company.


--Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $437.39 0.76%
SVU $8.08 -0.12%
AAPL $126.60 0.94%
FB $86.91 1.34%
GOOG $521.84 0.26%

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs