(By Salman - iStockAnalyst Writer)U.S. stock futures rose after better-than-estimated G.D.P growth data and jobless claims data bolstered expectations the economy will recover from the collapse of the subprime mortgage market. Commerce Department said gross domestic product expanded at a 3.3 percent annual rate in the second quarter, up from a 1.9 percent estimate made last month. Survey estimates ranged from 2.2 percent to 3.1 percent. Record exports and the temporary stimulus from the tax rebates prevented the economy from stalling. The shrinking trade gap has contributed to economic growth for more than a year, culminating in a 2.4 percentage-point boost last quarter that was the biggest since 1980.

Initial jobless claims in the U.S. fell for a third straight week, a sign companies may be slowing the pace of job cuts. The number of Americans filing first-time claims for unemployment benefits decreased by 10,000 to 425,000 in the week ended Aug. 23, from a revised 435,000 the prior week. The number of people staying on rolls rose to 3.423 million, the highest since November 2003. The four-week moving average of initial claims, a less volatile measure than the weekly figure, dropped to 440,250 from 446,250, today's report showed. So far this year, weekly claims have averaged 375,400, compared with 321,000 for all of 2007.

Futures on the Standard & Poor's 500 Index expiring in September gained 5, or 0.4 percent, to 1,287.6 at 8:36 a.m. in New York. Dow Jones Industrial Average futures rose 40 to 11,537. Nasdaq-100 Index futures added 7.25 to 1,909.

Crude-oil futures continued to gain support from concerns that Tropical Storm Gustav may damage energy infrastructure in the Gulf of Mexico. Crude oil for October delivery rose as much as $1.95, or 1.63 percent, to $120.13 a barrel on the New York Mercantile Exchange at 9:13 ET.

The euro rose against the dollar for a second day on speculation the region's interest-rate advantage over the U.S. will draw investors after European Central Bank officials signaled a cut in borrowing costs is unlikely.

American International Group Inc., Wal-Mart Stores Inc. and Citigroup Inc. led gains in Dow Jones Industrial Average stocks trading in Europe. MBIA, the largest bond insurer, jumped as much as 12 percent to $13.40 in after-hours trading yesterday after the Armonk, New York- based company said it will receive premiums of about $741 million as part of the contract. MBIA is seeking to show it can survive without the AAA rating it lost this year. The company is losing business to Warren Buffett's new insurance unit as well as Assured Guaranty Ltd. and Financial Security Assurance Inc. MBIA led bond insurers posting record losses after straying from the business of backing municipal bonds to guaranteeing collateralized debt obligations that have tumbled in value.

Meanwhile, Toyota Motor Corp., the world's second-largest carmaker, lowered its forecast for 2009 auto sales growth to 2.1 percent from 5.6 percent as record fuel prices and slowing economies damp global demand. Sales will climb to 9.7 million vehicles next year from an estimated 9.5 million this year, the company said in a statement today. It previously forecast sales to rise to 10.4 million from 9.85 million. The automaker will reduce production in the U.K. and Poland, adding to cuts in the U.S. Toyota lowered the target for North America, its biggest market, by 10 percent as drivers buy fewer sport-utility vehicles and pickup trucks because of gasoline prices that have reached $4 a gallon.

Sears Holdings Corp., the biggest U.S. department-store company, reported second-quarter profit that fell more than analysts estimated after shoppers trimmed spending on appliances and clothing. Profit excluding some costs will rise in the second half of the year, Hoffman Estates, Illinois-based Sears said today in a statement.

European shares extended gains in afternoon trade on Thursday, after data showed the U.S. economy expanded at a stronger-than-first-reported 3.3 percent annual rate in the second quarter. FTSE was up 1.05% at 5528, DAX was up 0.99% at 6383while CAC was up 1.40% at 4434 at 8:40 ET.

Natixis SA, the French bank seeking 3.7 billion euros ($5.5 billion) in new capital, reported a second-quarter loss that exceeded analysts' estimates on writedowns tied to struggling U.S. bond insurers.

Amongst Asian indices, Hong Kong shares fell 2.3 percent on Thursday while Japan's Nikkei stock average edged up 0.1 percent.