BEFORE THE BELL: US Stock Futures Up Ahead Of Jobless Claims Data

29th Jul 2010 11:14

By Polya Lesova Stock futures pointed to opening gains on Wall Street Thursday, as strong earnings reports from European companies buoyed sentiment, with traders awaiting results from oil major Exxon Mobil Corp. and data on U.S. weekly jobless claims. Futures on the Dow Jones Industrial Average rose 48 points to 10496 and S&P 500 futures gained 5.80 points to 1107.90. Nasdaq 100 futures advanced 7.25 points to 1877. The Dow fell 0.4% on Wednesday, snapping a four-day winning streak, as disappointing data rekindled concerns over U.S. economic growth. Before markets open, Exxon Mobil Corp. (XOM) is expected to report second-quarter earnings of $1.46 per share and revenue of $96.86 billion. Colgate-Palmolive Co. (CL) and Motorola Inc. (MOT) will also release quarterly results. The Labor Department will report weekly jobless claims at 8:30 a.m., EDT. "The U.S. data docket is fairly quiet, but initial jobless claims will likely be closely watched again," said strategists at Deutsche Bank AG (DB). In the currency markets, the dollar came under selling pressure amid comments from a ratings agency. If U.S. government projections for debt levels materialize, the nation's triple-A credit rating will have to be examined, Moody's Investors Service's lead sovereign analyst for the country told Dow Jones Newswires on Thursday. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, fell 0.6% to 81.708. The euro gained 0.5% to $1.3065, as data showed that economic sentiment in the 16-nation euro zone rose in July, while the number of unemployed in Germany declined. European shares rose, as investors digested a deluge of mostly positive earnings reports. The Europe Stoxx 600 index gained 0.4%. "Company earnings are coming in thick and fast, and the general theme so far has been one of outperformance as opposed to disappointment, and this has invigorated appetite for risk," said Joshua Raymond, market strategist at City Index. In the energy sector, Royal Dutch Shell PLC (RDSA.LN, RDSB.LN, RDSB) reported a 15% rise in second-quarter net profit as higher production and lower costs were partly offset by a bigger tax bill. Revenue surged 42% to $90.57 billion. Oil giant BP PLC (BP, BP.LN) is in negotiations with its Russian venture TNK-BP Holding (TNBP.RS) over the sale of about $1 billion of oil assets in Venezuela, the Times newspaper reported on Thursday. BP this week tripled its target for asset disposals to $30 billion in an effort to secure enough cash to cover the costs of the disastrous Gulf of Mexico oil spill. In Spain, Banco Santander (STD) said its second-quarter net profit fell 8%, while profit at Telefonica (TEF) rose 16% driven by revenue growth in Latin America. Germany's blue-chip DAX index advanced 0.5%. The most actively traded stock in the index was Siemens AG (SI), which reported a 12% increase in fiscal third-quarter net profit, as orders soared 22% to EUR20.87 billion ($27.08 billion). Shares of car maker Volkswagen AG (VLKAY, VOW.XE) rose 2% after it said its first-half net profit surged to EUR1.82 billion from EUR494 million in the same period a year ago. Revenue rose 21% to EUR61.8 billion. In the pharmaceutical sector, shares of Astra Zeneca PLC (AZN) rallied 4% after it reported profit growth and raised its guidance. France's Sanofi-Aventis (SNY) announced a 61% increase in second-quarter net profit. Meanwhile, crude-oil futures gained 21 cents to $77.20 a barrel in electronic trading on the New York Mercantile Exchange. Later in the day, the Treasury will sell $29 billion in 7-year notes. -By Polya Lesova; 49 69 29725517; [email protected] (END) Dow Jones Newswires July 29, 2010 06:14 ET (10:14 GMT)