(By Salman - iStockAnalyst Writer)US stock futures jumped on Thursday after Alcoa (
AA) posted a surprise profit through cost cutting and higher aluminum prices after three straight quarterly losses. Better-than-expected initial claims data also boosted stocks
At 8:31 am ET, the S&P 500 futures rose 11.90 points to 1065.50. The Dow Jones Industrial average futures climbed 86 points to 9759. The Nasdaq Composite futures gained 16 points to 1724.
A release by Department of Labor on Thursday showed number of Americans filing first- time claims for unemployment benefits fell 33,000 to 550,00 in the week ending October 3. Economists expected jobless claims to drop to 540,000. The four-week average of seasonally adjusted initial jobless claims, a less volatile gauge, decreased 9,000 to 539,750. Continuing claims for the week ending September 26 dropped 72,000 to 6.04 million.
US aluminum giant Alcoa on Wednesday reported surprise fiscal third-quarter profit. The company earned $77 million, or 8 cents a share, compared to a profit of $268 million, or 33 cents a share, in the year-ago quarter. Revenue declined 33% to $4.62 billion from last year's quarter.
Early on Thursday, PepsiCo Inc. (NYSE:
PEP) said that its third-quarter net income rose to $1.72 billion, or $1.09 a share, from $1.58 billion, or 99 cents a share, in the prior year period. Revenue declined to $11.08 billion from $11.24 billion.
Marriott International Inc. (NYSE:
MAR) said Thursday that it swung to fiscal third quarter loss of $466 million or $1.31 per share, compared with earnings of $94 million, or 25 cents per share, in the same quarter last year. Excluding impairment charges of $502 million, or $1.41 per share, restructuring costs and other items, adjusted income from continuing operations was $53 million, or 15 cents per share. Revenue dropped 17 percent to $2.47 billion.
The second largest pc maker Dell In. (NASDAQ:
DELL) said Wednesday that it will close a North Carolina desktop computer manufacturing plant early next year, and lay off 905 workers.
According to reports, the Justice Department has started a preliminary investigation into allegations that International Business Machines Corp. (NYSE:
IBM) has monopolized the market for mainframe computers, broadening Washington's search for anti-competitive behavior in the technology industry.
The Bank of England on Thursday left its main interest rate unchanged at the record low of 0.5 percent.
On the economic front, wholesale inventories data is due for release at 10:00 am.
US stocks finished little changed on Wednesday as investors remained jittery ahead of the start of third quarter earnings.
European stocks advanced in afternoon trade. At 12:28 pm London time, the UK FTSE gained 31.21 points or 0.61% to 5,140.11. The German DAX and French CAC increased 1.14% and 1.15% respectively.
Asian stocks finished higher. The Nikkei 225 rose 32.87 points or 0.34% to 9,832.47. The Hang Seng index of Hong Kong jumped 251.31 or 1.18% to 21,492.90.
NYMEX crude oil for November delivery climbed as much as 88 cents or 1.2% to $71.76 a barrel in electronic trading.
Disclosure: Author doesn't own any of the stocks discussed here.
