Thursday March 27, 10:00 AM
WALL STREET OUTLOOK Higher ahead of data, Fed speeches; Oracle disappoints
LONDON (Thomson Financial) - Wall Street is looking at a higher open Thursday ahead of a fourth-quarter GDP report, jobless data and a brace of speeches from Federal Reserve officials, but Oracle Corp. is likely to underperform after disappointment
over its latest earnings report.
According to spread bettors IG Index, the Dow Jones Industrial Average is expected to open up around 20 points at 12,442. Separately, S&P 500 futures were up 7.50 points at 1,342.70 while Nasdaq 100 (NASDAQ: news) futures climbed 9.50 points to 1,819.75.
Yesterday, stocks ended lower after a drop in February's durable goods orders injected more pessimism about the economy into the stock market. The Dow industrials fell nearly 110 points.
A final reading on fourth-quarter GDP is expected to show the U.S. economy grew just 0.6% in the last three months of 2007, according to the median estimate of economists polled by Thomson (Paris: FR0000184533 - news) 's IFR Markets.
Meanwhile, the number of people claiming unemployment benefit for the first time is expected to have fallen to 370,000 in the latest week from 378,000 in the prior week, according to IFR.
Speeches from a number of Federal Reserve officials will also offer investors an insight into the central bank's thinking on interest rates, economic growth and inflation.
Oracle shares fell over 8% in after-hours trading Wednesday amid disappointment over the a shortfall in third-quarter revenues and weaker-than-expected new license growth.
Clear Channel Communications Inc (NYSE: CCU - news) . are likely to be active for a second day in a row after the radio station operator and the private equity firms seeking to buy the company said they are suing the banks who are backing the $19.5 billion purchase.
In lawsuits filed in Texas and New York, Clear Channel and the buyers group, led by Bain Capital and Thomas H. Lee Partners LLC, claimed the six banks that promised to finance the deal were reneging on the agreement to provide long-term financing, looking to offer little more than a short-term bridge loan.
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