Stocks signal higher open ahead of economic data

[March 26, 2009]  NEW YORK (AP) -- Wall Street pointed higher Thursday ahead of readings on the nation's economic output and on weekly unemployment claims.

Investors are eager for more insights into the state of the economy after better-than-expected figures on measures like home construction and retail sales helped fuel a rally in stocks that has lasted more than two weeks.

The economic reports arriving Thursday could provide a mixed view. The government is expected to report in its third and final update to gross domestic product for the fourth quarter that the total value of goods and services produced within the United States contracted at an annualized rate of 6.5 percent for the October-December quarter. The government last estimated GDP showed a 6.2 percent annualized drop.

Traders are bracing for a bad number but can take some comfort in knowing the data is for the already written-off fourth quarter.

Another government report on weekly unemployment claims could be of more interest to traders because it provides a more recent snapshot of one part of the economy. Figures are expected to show that new unemployment benefit claims rose slightly last week while continuing claims reached a new record as laid-off workers face difficulty finding work.

Economists expect the jobless benefit claims will increase to a seasonally adjusted 650,000 from the previous week's 646,000, according to a survey of Wall Street economists by Thomson Reuters.

Both reports are due at 8:30 a.m. EDT.

Ahead of the reports, Dow Jones industrial average futures rose 50, or 0.7 percent, to 7,730. Standard & Poor's 500 index futures rose 6.20, or 0.8 percent, to 814.40, while Nasdaq 100 index futures rose 11.50, or 0.9 percent, to 1,245.00.

The dollar was mixed against other major currencies, while gold prices rose.

Oil rose 89 cents to $53.66 a barrel in electronic trading on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average rose 1.8 percent. In afternoon trading, Britain's FTSE 100 rose 0.15 percent, Germany's DAX index rose 0.7 percent, and France's CAC-40 slipped 0.1 percent.

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On the Net:

New York Stock Exchange: http://www.nyse.com/

Nasdaq Stock Market: http://www.nasdaq.com/

[Associated Press; By TIM PARADIS]

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