Stock futures rise though Greece remains a concern

[May 06, 2010]  NEW YORK (AP) -- Stock futures are rising slightly Thursday, steadying themselves after two days of sharp market drops tied to fears Greek debt problems would spread across Europe.

European markets rose, though investors remain concerned about whether debt problems will upend an economic recovery.

The euro is continuing to fall against the dollar, a sign that investors are not sure whether a Greek bailout will stem the mounting problems. The euro is at its lowest level against the dollar in 14 months.

Greece is trying to tap a $144 billion aid package from the 15 other countries that use the euro and the International Monetary Fund. The nation needs access to an initial portion of the money by May 19 to cover $11.6 billion in debt payments, or else it will likely default.

Even if Greece gets the money it needs, there are still worries that would be only a temporary fix to a growing debt problem across the continent, and others like Portugal and Spain will all eventually need similar rescues.

The European Central Bank is meeting Thursday and expected to discuss the growing debt problems.

European debt concerns have been overshadowing signs of a domestic recovery in recent days. Investors focused on the U.S. economy will get reports Thursday that are expected to show initial claims for jobless benefits fell last week and productivity continued to rise in the first quarter. Retailers are also reporting April monthly sales throughout the morning.

Ahead of the opening bell, Dow Jones industrial average futures rose 27, or 0.3 percent, to 10,861. Standard & Poor's 500 index futures rose 4.50, or 0.4 percent, to 1,168.40, while Nasdaq 100 index futures rose 2.25, or 0.1 percent, to 1,960.75.

The Dow has dropped 284 points over the past two days.

The Labor Department's weekly report on initial jobless claims is expected to show fewer people applied for unemployment benefits last week. Economists polled by Thomson Reuters predict claims fell to 440,000 last week, from 448,000 a week earlier.

It would mark the third straight weekly drop and be a positive sign heading into Friday's monthly jobs report. The unemployment rate likely held steady at 9.7 percent in April. High unemployment remains one of the key issues facing the U.S. economy as it continues to rebound.

A report on first-quarter productivity is expected to show a gain of 2.5 percent compared with the previous quarter. Productivity surged 6.9 percent in the fourth quarter.

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

Bond prices fell after rising steadily in recent days as investors sought safer investments. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.58 percent from 3.54 percent late Wednesday.

Gold rose, while oil dipped.

Overseas, Britain's FTSE 100 rose 0.2 percent, Germany's DAX index rose 0.6 percent, and France's CAC-40 rose 0.1 percent. Japan's Nikkei stock average, which had been closed the past three days for holidays, fell 3.3 percent.

[Associated Press; By STEPHEN BERNARD]

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