Stock Futures Point Higher Despite Shrinking GDP
NEW YORK (TheStreet) -- U.S. stock futures were moving higher Thursday morning even as data came in mixed on the labor market and GDP growth.
Dow Jones Industrial Average futures were up 22 points, or 0.13%, to 16,650, while Nasdaq futures were up 0.09% to 3,719.5. S&P 500 futures were up 2.25 points, or 0.12%, to 1,911.25.
- International markets were mixed with the FTSE 100 up 0.34% and the DAX down 0.02%. The Nikkei 225 edged 0.07% higher, and the Hong Kong Hang Seng dropped 0.3%.
- Apple (AAPL) has made it official, agreeing to acquire Beats Electronics for $3 billion, $2.6 billion in cash and the remainder in equity which will vest over time.
- Membership-only retailer Costco (COST) reported a 3.1% increase in third-quarter profit to $473 million, or $1.07 a share, but fell shy of analysts' estimates by 2 cents, according to Thomson Reuters. Though Costco fared moderately well in a quarter which brought some of the best retailers to their knees, shares were sliding 0.74% to $113.40 before the bell.
- Shares of Abercrombie & Fitch (ANF) were adding 8.2% after the teen retailer managed to stem losses in its first quarter. Net losses of $13 million, or 17 cents a share, were narrower than analysts' forecasts for losses of $13.4 million, or 19 cents a share. Total sales slipped 2% to $822 million, higher than an anticipated $798 million.
- Palo Alto Networks (PANW) was soaring 14.4% after reporting third-quarter profits of 11 cents a share, a penny over estimates. Separately, the company said it had settled patent litigation with Juniper Networks (JNPR), agreeing to pay a one-time penalty of $175 million.
- Avago Technologies (AVGO), Lions Gate (LGF) and Veeva Systems (VEEV) will be on watch after the bell following their respective earnings reports.
- On the economic front, initial jobless claims fell to a seasonally-adjusted 300,000 for the week ended May 24, well below analysts' estimates for 318,000, indicating a labor market on the mend.
- The Commerce Department released data showing GDP shrinking at a 1% annual rate, the first time the economy has shrunk in its first quarter since 2011.
- Pending home sales data is due out at 10 a.m. EDT.
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