Stocks Seen Higher Ahead of Data...FYI...
<<NEW YORK (Reuters) - Signs pointed to a strong start for U.S. stocks on Thursday, but analysts noted that inflation numbers due before the opening bell would weigh heavily on morning trade.
The Producer Price Index data was scheduled for release at 8:30 a.m. EST along with weekly jobless claims. The Federal Reserve, and therefore Wall Street, keeps a close eye on those figures for hints of inflation in the U.S. economy.
Trading will also be strongly shaped by Fed Chairman Alan Greenspan's comments on Capitol Hill later on Thursday morning, starting at 10 a.m. EST, analysts said.
''Right now, the indications are for a higher opening. But all of this will change when we get the inflation numbers,'' said Peter Cardillo, director of research at Westfalia Investments.
''The inflation numbers will have an immediate effect on the opening, and if they are over and beyond what we're looking for then obviously the market will become very nervous going into Mr. Greenspan's testimony,'' he said.
The Standard & Poor's 500 futures index for March was up 6 points to 1,398.80 while the Nasdaq futures index for March was up 14.45 points at 4,036.95.
The 30-year U.S. Treasury bond rose 3/32, pushing the yield to 6.25 percent, compared with Wednesday's close at 6.26 percent.
Greenspan is expected to give his semi-annual Humphrey-Hawkins testimony before the House Banking Committee.
Also on the calendar, Federal Reserve Vice Chairman Roger Ferguson is scheduled to deliver comments on the new economy in New York. In Tokyo, Federal Reserve Bank of Chicago President Michael Moskow speaks about the U.S. economy at the Japan Center for International Finance & Sumitomo-Life Research Institute International.
Concerns about inflationary pressure in the economy roiled markets on Wednesday as stronger-than-expected housing starts data combined with high oil prices to fuel fears of another boost in interest rates by the Fed.
Interest rate-sensitive financial stocks helped pull the broader market lower on Wednesday and even technology names lost ground in a late-session sell-off.
The Dow Jones industrial average (^DJI - news) fell 156.68 points, or 1.46 percent, to 10,561.41. The broader Standard & Poor's 500 Index (^SPX - news) eased 14.38 points, or 1.03 percent, to 1,387.67.
Dow components American Express Co. (NYSE:AXP - news) closed down 6-3/4 at 152-3/8 and J.P. Morgan (NYSE:JPM - news) fell 2-13/16 at 112-13/16.
The Nasdaq Composite Index (^IXIC - news) inched up 6.88 points, or 0.16 percent, to 4,427.65 after staging a rally in early trade led largely by biotech stocks.
Crude for March delivery settled on Wednesday at $30.05 a barrel, just a penny below where it ended on Tuesday after hitting a fresh Gulf War high of $30.45 on Tuesday.
Overnight, Saudi Oil Minister Ali al-Naimi told his South Korean counterpart that he ''personally'' sees the ideal crude oil price at $20-$25 a barrel. U.S. Energy Secretary Bill Richardson also said he thinks oil prices will stabilize.>>
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