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U.S. stock futures drifted lower Thursday morning, unable to keep Wednesday's momentum aided by comments from the Federal Reserve saying economic activity is stabilizing or improving in most of the U.S. This morning, as investors digest President Obama's health care speech, they also await several reports, including trade and employment data.[Update: Jobless claims fell last week.]
The Federal Reserve released the Beige Book of economic anecdotes late in the session Wednesday. Economic activity is stabilizing or improving in most of the U.S., the survey said. While the recession may be over according to the Fed and several other economists, albeit with a cautious outlook, the U.S. employment picture will stay bleak well into next year long after the recession ends, even if the worst of the labor market crisis is over, a poll of private economists conducted for the Blue Chip Economic Indicators September survey said.
Meanwhile, home foreclosures in August jumped 18 percent from a year ago, and decreased only 0.5 percent from the previous month, according to a new report by RealtyTrac, indicating "there is still an ample supply of properties filling the foreclosure pipeline."
Economic data released today includes weekly initial and continuing jobless claims due out at 8:30 a.m., and the trade balance for July, due out at the same time. Investors will also tune in to hear a testimony from Treasury Secretary Timothy Geithner at a TARP oversight panel.
Overseas, European and Asian stocks rose Thursday, but European stocks have been losing momentum by midday. The Bank of England left interest rates unchanged at a record low of 0.5 percent for the sixth month running on Thursday. The Bank of Canada is also scheduled to make interest-rate decision.
Oil prices rose to almost $72 a barrel Thursday, helped by a weaker U.S. dollar, and OPEC leaving its production quotas unchanged.
On the corporate side, Texas Instruments (NYSE: TXN) raised its third-quarter forecast on stronger chip demand, while GM has been reported it would keep Opel. New reports indicate GM might sell Opel to Magna.
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