By Polya Lesova, MarketWatch
LONDON (MarketWatch) — U.S. stock futures straddled the flat line on Thursday, as caution dominated ahead of data on the labor market and international trade.
Futures on the Dow Jones Industrial Average (DJH11 11,695, -13.00, -0.11%) slipped 6 points to 11,702 and S&P 500 futures (SPH11 1,283, -0.30, -0.02%) was virtually flat at 1,282.50.
Nasdaq 100 futures (NDH11 2,304, -0.25, -0.01%) was little changed at 2,304.
The blue-chip Dow index (DJIA 11,755, +83.56, +0.72%) rose 0.7% to end at 11,755.44 on Wednesday, posting its highest close since August 2008.
On the economic front, data on weekly jobless claims, December producer prices and November international trade will be released at 8:30 a.m. Eastern time on Thursday.
Later in the day, Federal Reserve Chairman Ben Bernanke will speak at a small-business lending forum.
European markets were mostly lower after the previous session’s rally. The Stoxx Europe 600 index (ST:STOXX600 285.35, -0.44, -0.15%) fell 0.3% in intraday trading.
Bucking the negative trend, Spain’s benchmark index rose more than 2%, as shares of Banco Santander SA (ES:SAN 8.64, +0.40, +4.81%) (STD 11.21, +0.32, +2.94%) surged nearly 5%.
The Spanish government sold 3 billion euros ($3.9 billion) in five-year bonds, though its borrowing costs rose compared to a November auction. Italy also successfully conducted a bond sale.
“There shouldn’t be any major surprises in these auctions as the process is being heavily managed by the authorities, but the level of yields/participation in these deals are worth noting,” Deutsche Bank said in a note published ahead of the auctions.
The euro gained 0.2% to $1.3144 following the auctions. The dollar index (DXY 79.90, -0.13, -0.16%) , which tracks the performance of the greenback against a basket of other major currencies, was nearly flat at 80.034.
ECB’s Trichet in spotlight
The Bank of England left its benchmark interest rate unchanged at 0.5% and it also kept its bond-buying program on hold.
The European Central Bank is also expected to keep monetary policy on hold later in the session. The market’s focus will be on ECB President Jean-Claude Trichet’s press conference, which will start at 8:30 a.m. Eastern.
Trichet is certain to be asked about the ECB’s role in the euro-zone bond markets and its plans about an eventual exit from its accommodative monetary policy given rising inflationary pressures.
Shares of insurance giant American International Group Inc. (AIG 58.84, +0.44, +0.75%) may see active trading after the firm said late Wednesday that it expects to close its recapitalization Friday and repay the U.S. government fully for the aid it received during the financial crisis.
In other news, home furnishings group Williams-Sonoma Inc. (WSM 34.18, +0.21, +0.62%) raised Thursday its outlook for fiscal fourth-quarter earnings and said same-store sales in the eight-week period to Dec. 26 rose 5%.
U.S.-listed shares of Infosys Technologies Ltd. (INFY 76.68, +1.48, +1.97%) slipped nearly 5% in thin premarket trading after the Indian IT services group reported weaker-than-expected quarterly results.
After the U.S. market closes, chip giant Intel Corp. (INTC 21.00, -0.30, -1.42%) is expected to report fourth-quarter earnings of 53 cents a share, according to a survey of analysts by FactSet Research.
In Asia overnight, stock markets finished mostly higher, with Japan’s Nikkei Stock Average rising 0.7%.
And in the commodity markets, oil futures fell 22 cents to $91.64 a barrel in electronic trading on Globex and gold futures slipped $6.10 to $1,379.80 an ounce.
