News Column

Stock Futures Rebound After Upbeat GDP, Jobless Claims

August 28, 2014

WASHINGTON (Alliance News) - US stocks are poised for a decent start to Thursday's session after a better-than-expected reading on second quarter economic growth.

The US economy grew at a slightly faster 4.2% annual pace in the second quarter, up from the 4% growth rate first reported, the Commerce Department said just now.

Meanwhile, jobless claims decreased by 1,000 to 298,000 in the week ended Aug. 23 from 299,000 in the prior period, a Labor Department report showed.

Despite the encouraging news on the US economy, escalating tensions between Ukraine and Russia may generate some anxiety on Wall Street.

Ukrainian President Petro Poroshenko says Russia has sent troops to eastern Ukraine and seized a border town. The West already has warned Russia about its role in Ukraine.

Futures for the Dow Jones Industrial Average were up 20 points, or 0.4%, to 17,031, while those for the S&P 500 index were flat at 2,000. Futures for the Nasdaq 100 index were also unchanged.

The S&P 500 breached the 2,000 mark for the first time ever earlier this week, and held to that milestone throughout yesterday's session.

In corporate news, Dollar General Corp. (DG) reported a rise in second-quarter earnings per share to 83 cents a share from 75 cents in the same period last year. Shares were set to open slightly lower.

Williams-Sonoma Inc. (WSM) shares are set drop 10% at the opening bell. The cookware maker issued a gloomy forecast for the current quarter, short of Wall Street expectations.

Canada's second-largest lender TD Bank Group (TD, TD.TO) reported higher profit in its third quarter, reflecting strong growth in all segments.

A fire broke out after an explosion at a BP (BP) refinery in Whiting, Indiana. The company said operations were minimally impacted.

US crude oil futures for September were up 25 cents at USD94.12, having bounced around USD94 for much of the week.

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Source: Alliance News

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