Thursday, Nov 10, 2011

--Stock futures rebound after yesterday's sharp selloff

--European stocks rise, lifting investor spirits

--Jobless claims drop to lowest level in seven months 


 
   By Steven Russolillo and Tomi Kilgore 
   Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--U.S. stock futures rose, rebounding from sharp losses a day earlier, as hope for the beleaguered labor market and strong results from Cisco Systems helped lift investor sentiment.

About an hour before Thursday's opening bell, Dow Jones Industrial Average futures climbed 126 points, or 1.1%, to 11858. The premarket action comes after the Dow slumped 389 points on Wednesday, its biggest decline since Sept. 22 and sixth largest this year.

Standard & Poor's 500-stock index futures hiked up 17 points, or 1.4%, to 1242, and Nasdaq 100 futures rallied 27 points, or 1.2%, to 2338. Changes in stock futures don't always accurately predict stock moves after the opening bell.

Stock futures ticked higher after a reading on unemployment claims offered hints of progress in the feeble labor market. The number of people filing applications for jobless claims dropped last week by 10,000 to a seasonally adjusted 390,000, the lowest level in seven months.

European stocks erased early losses to turn higher, with the Stoxx Europe 600 up 0.4% after being down as much as 1.5% at its intraday low. Yields on 10-year Italian bonds remained above the key 7% mark, but have come off higher levels amid trader talk that the European Central Bank was supporting the bonds.

Investors were optimistic that a key Italian economic bill would be approved by the weekend, which would help stem the government's rising borrowing costs and pave the way for Prime Minister Silvio Berlusconi to resign. Investors also felt some relief after word came that Greece named Lucas Papademos as its new prime minister.

Asian bourses suffered steep losses, with Japan's Nikkei Stock Average shedding 2.9% and Hong Kong's Hang Seng plunging 5.3%.

Gold futures dropped below $1,776 an ounce, while crude oil futures rose above $97 a barrel. The U.S. dollar fell against the euro and the yen.

Cisco ran up 7.2% in premarket trading after the blue-chip networking company reported fiscal first-quarter earnings and revenue that exceeded expectations. An upbeat outlook also offered early evidence that the networking equipment company's turnaround effort may be working.

Elsewhere, Green Mountain Coffee Roasters slumped 30% after the company's fiscal fourth-quarter revenue missed the company's forecasts and Wall Street's targets.

Kohl's tacked on 3.2%. The department-store's fiscal second-quarter profit rose 20% on continued sales growth and as its focus on private and exclusive brands helped boost margins.

Advance Auto Parts gained 1.7% after the auto parts retailer's fiscal third-quarter profit rose 20%. The company also boosted its full-year earnings outlook.

Viacom's fiscal fourth-quarter results beat forecasts, and the entertainment company said it was expanding its stock repurchase program to $10 billion from $4 billion. The stock was still inactive ahead of the open.

-By Steven Russolillo and Tomi Kilgore, Dow Jones Newswires; 212-416-2180; steven.russolillo@dowjones.com

(END) Dow Jones Newswires

November 10, 2011 08:43 ET (13:43 GMT)