Before the Bell: Futures Mixed Ahead of Data

Posted Apr 1st 2010 8:30AM by Melly Alazraki
Filed under: International Markets, Bad News, Market Matters, Citigroup Inc. (C), Research in Motion (RIMM), Economic Data, Oil

U.S. stock futures were mixed Thursday morning following some positive data in global markets that is pointing the global economy may be back on track for growth. Investors also awaited some U.S. data coming up Thursday morning, including figures on jobless claims, manufacturing and auto sales. On Friday markets are closed for Easter break.

Overseas, world markets rose Thursday after strong manufacturing data from China and Europe boosted sentiment as hopes that the global recovery from recession is gaining traction is on track. In China, orders climbed in March, above what economists had expected. The same was true for Britian. And in the eurozone, manufacturing activity was at a 40-month high in March. Meanwhile, business sentiment in Japan also improved.

Still, in the U.S., more employment numbers are due out Thursday ahead of Friday's nonfarm payroll report and following disappointed employment reports from Wednesday that showed the private sector kept losing jobs. At 8:30 a.m. Eastern, initial and continuing jobless claims is due. Economists expect that claims fell last week to 440,000 from 442,000 in the previous week, according to Briefing.com.

Already, outplacement firm Challenger, Gray & Christmas Inc. reported earlier this morning Job cuts accelerated in March. Treasury Secretary Timothy Geithner, speaking at a nationally broadcast interview, said Thursday the national jobless rate - now at 9.7% -- is "still terribly high and is going to stay unacceptably high for a very long time" because of the damage caused by the recession.

Also due out Thursday morning are February construction spending from the Census Bureau to be released at 10:00 a.m. and the Institute for Supply Management's manufacturing index for March. Construction is expected to drop, while the ISM index is expected to rise. Auto and truck sales for March are due throughout the day. from car manufacturers.

Meanwhile, oil prices rose above $84 a barrel Thursday, extending a two-month rally, the AP reported.

Among stocks in the news, Research In Motion Ltd. (RIMM) is slumping after it reported disappointing revenue, Citigroup (C) completed its Primerica spinoff, pricing it above expectations; and Micron Technology Inc. (MU) is rising nicely after reported a second-consecutivequarterly profit.

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