The major U.S. index futures are pointing to a higher opening on Thursday, with sentiment getting a lift from positive data points from Asia and domestically. Earlier in the day, Japan reported an upward revision to its third quarter growth and Australia released strong jobs numbers. Added to the optimism, the U.S. Labor Department reported a bigger than expected decline in jobless claims. Stray corporate pre-announcements trickling in are suggesting that corporate profit growth may continue to remain strong. The prices of commodities are moving back to the upside, deriving strength from the positive data points despite the dollar trading in a mixed fashion. U.S. stocks ended a listless session on Wednesday modestly higher, as the markets showed a lack of direction amid a lack of any major catalysts and the strengthening of the dollar. The major averages opened higher but were unable to sustain an initial upward. The Dow subsequently bounced back and forth across the unchanged line before closing up 13.32 points or 0.12% at 11,373. After showing volatility till the afternoon, the S&P 500 Index moved decisively into positive territory and showed sideways movement thereafter to close up 4.53 points or 0.37% at 1,228. The Nasdaq Composite Index was mostly higher, barring a mid-morning collapse, ending up 10.67 points or 0.41% at 11,328. The S&P 500 set a more than two-year closing high, while the Nasdaq set a nearly three-year closing high. Nineteen of the thirty Dow components closed higher, with financials leading the way. Bank of America (BAC) climbed 3.72%, American Express (AXP) gained 1.90% and JP Morgan Chase (JPM) rallied 2.57%. Other notable gainers included Home Depot (HD), which raised its 2010 guidance, Travelers Co. (TRV), Microsoft (MSFT), Kraft Foods (KFT), Intel (INTC) and Hewlett-Packard (HPQ). On the other hand, Boeing (BA) fell 1.59%, United Technologies (UTX) lost 1.08% and McDonald’s (MCD) declined about 2% after reporting weak November global same store sales. Among the sector indexes, the NYSE Arca Broker/Dealer Index rose 1.18% and the KBW Bank Index rallied 2.95%. Meanwhile, the NYSE Arca Airline Index slipped 1.07%, the Dow Jones U.S. Basic Materials Average fell 1.10% and the NYSE Arca Gold Bugs Index slumped 2.25%. In the technology space, the Philadelphia Semiconductor Index and the NYSE Arca Disk Drive Index gained about 1% each. Currency, Commodity Markets Crude oil futures are moving up $0.52 to $88.80 a barrel after receding $0.41 to $88.28 a barrel on Wednesday. Gold futures are currently rising $4 to $1,387.20 an ounce. In the previous session, the precious metal declined $25.80 to $1,383.20 an ounce. Among currencies, the U.S. dollar is trading at 83.935 yen compared to the 84.0383 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.3232 compared to yesterday’s $1.3263. Asia The major Asian markets closed Thursday’s session mostly higher, although the Indian and Chinese markets retreated. The markets were encouraged by the positive close on Wall Street overnight and the release of some encouraging domestic economic data, including a positive jobs report from Australia. Japan’s Nikkei 225 average opened higher, but it gave back most of its gains over the course of the morning session. The index moved back to the upside in afternoon trading, however, closing up 53.55 points or 0.52% at 10,286. The market received some support from an upward revision to the country’s third quarter GDP. The Japanese economy expanded at a 1.1% sequentially in the third quarter, better than the preliminary estimate of 0.9% and economists’ estimate of 1%. In two central bank decisions from the region, the Bank of Korea and the Reserve Bank of New Zealand opted to hold interest rates unchanged. Europe The major European averages are trading higher, with the French CAC Index and U.K.’s FTSE 100 Index are rising 0.77% and 0.18%, respectively, while the U.K.’s FTSE 100 Index is receding 0.50%. Meanwhile, the Bank of England announced at the conclusion of its monetary policy meeting that it is maintaining the size of the quantitative easing at 200 billion pounds and left its key interest rate unchanged at a record low again as expected. Policy makers voted to hold the interest rate at 0.5%. The current rate is the lowest since the central bank was established in 1694. Economists expect the central bank to retain the rate at this level well into 2011. U.S. Economic Reports First-time claims for unemployment benefits in the U.S. fell by more than anticipated in the week ended December 4th, according to a report released by the Labor Department, although jobless claims remain above the two-year low set in late November. The report showed that initial jobless claims fell to 421,000 from the previous week's revised figure of 438,000. Economists had expected jobless claims to slip to 429,000 from the 436,000 originally reported for the previous week. The Commerce Department is due to release its wholesale inventories report at 10 AM ET. Economists expect wholesale inventories at the end of October to show a 0.7% increase. Wholesale inventories rose 1.5% month-over-month in September compared to expectations for a 0.6% increase. Durable goods inventories increased 0.7% compared to a steeper 2.8% increase in non-durable goods inventories. At the same time, wholesale sales rose 0.4%. Accordingly, the inventories to sales ratio was at 1.18 in September compared to 1.22 in the year-ago period. Stocks in Focus Earnings Ciena (CIEN) reported a fourth quarter non-GAAP loss of 18 cents per share compared to a loss of 12 cents per share in the year-ago period. Revenues rose to $417.61 million from $176.27 million last year. Analysts estimated a loss of 15 cents per share on revenues of $405.31 million. For the first quarter, the company expects revenues of $410 million to $430 million, while analysts estimate revenues of $415.80 million. Smithfield Foods (SFD) reported second quarter net income of 86 cents per share on revenues of $3 billion, up 11.4% year-over-year. On an adjusted basis, the company reported earnings of 80 cents per share. The consensus estimates had called for earnings of 56 cents per share on revenues of $3.21 billion. Other Corporate News DuPont (DD) could see some activity after it reaffirmed its 2010 adjusted earnings estimate of $3.10 per share, while it expects 2011 earnings of $3.30-$3.60 per share despite an anticipated decline in pharmaceutical royalties of about $280 million due to patent expirations. Analysts estimate earnings of $3.10 per share for 2010 and $3.45 per share for 2011. From 2015, the company expects adjusted earnings per share to grow at a 12% compounded annual growth. For 2011, the company expects revenues of $33 billion to $34 billion, above the $33.42 billion consensus estimate. AIG (AIG) may be in the spotlight after it said in a filing that it would repay a loan it took from the Federal Reserve Bank of New York, which will facilitate the sale of the Treasury’s stake in the insurer. Fortune Brands (FO) could see some activity after Fitch said it has placed the ratings of the company on rating watch following its announcement that it plans to separate its three businesses. Dollar General (DG) may see some activity after it announced that it has priced its underwritten secondary offering of 25 million shares at $30.50 per share. The company noted that shares are being sold by existing shareholders and it will not receive any proceeds from the offering. Northrop Grumman (NOC) could gain ground after it announced that it received a $323.6 million, cost plus incentive fee contract extension for the continuation of work on the nuclear-powered aircraft carrier CVN 70. SUPERVALU (SVU) is expected to move in reaction to its announcement that it has entered into a stock purchase agreement for the sale of its wholly owned subsidiary Total Logistic Control to Ryder Integrated Logistics, the supply chain division of Ryder System (R). The sale is expected to close on December 31st, 2010. Semtech (SMTC) may also be in focus after it said it has agreed to settle all claims asserted against all defendants in the putative class action concerning its stock option accounting practices. The agreement calls for the payment of $20 million by the company. Comtech Telecommunications (CMTL) could react to its announcement that its first quarter GAAP net income rose to 79 cents per share from 30 cents per share last year. Net sales rose to $178.2 million from last year’s $133.8 million. Analysts estimated earnings of 61 cents per share on revenues of $169.18 million. Stryker (SYK) may see some buying interest after it reported that its board has approved a 20% increase in its dividend. The company’s board also authorized the repurchase of an incremental $500 million of its common stock.

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