Jobless Claims Rise

Elena
29 Dec, 2005
New York City

Asian-Pacific benchmarks rallied Thursday with the Nikkei in the lead, rising 0.9% to a new multi-year high of 16,344.20 on expectations of strong corporate profit and economic growth. European markets slightly advanced at mid-day, suppported by miners and insurers with each average rising 0.3%. InterDigital Communications said that a federal judge confirmed an award against mobile phone making giant Nokia Corp. for between $232 million and $252 million.

U.S. MARKET AVERAGES

U.S. stock futures pointed to a slightly higher Thursday opening, following yesterday’s rebound from Tuesday''s sharp sell off. In another day of light pre-holiday trading, a multi-billion dollar hotel deal and a couple of economic reports will be in focus.

November existing home sales report is scheduled to be released after the opening bell with the measure expected to continue October''s slide and come in at a rate of about 7 million units.

In other economic news, weekly employment figures are set to be announced before the opening bell. During the mid-morning, the government is scheduled to release weekly petroleum inventory data.

Of companies in focus, Hilton Hotels Corp is expected to announce that it bought the international hotels of Hilton Group for around $6 billion. Both companies had previously confirmed those talks and a deal may lead to further consolidation talk in the lodging industry, with Starwood Hotels & Resorts Worldwide Inc. reportedly a suitor for InterContinental Hotels Group PLC.

InterDigital Communications Corp. said late Wednesday that a federal judge confirmed an award rendered by a tribunal against mobile phone making giant Nokia Corp. for between $232 million and $252 million.

Dow Jones futures were recently up 7 points, S&P 500 futures rose 0.9 of a point, and Nasdaq 100 futures were up 1 point.

ECONOMIC NEWS

Thursday morning, the Department of Labor released its report on initial jobless claims in the week ended December 24. The report showed that jobless claims rose slightly less than economists had expected.

The Labor Dept. said that jobless claims rose to 322,000 from the previous week's revised figure of 319,000. Economists had been expecting claims to rise to 325,000 compared to the 318,000 originally reported for the previous week.

The report also showed that the less volatile four-week moving average edged up to 325,000 from the previous week's revised average of 324,750. Additionally, continuing claims rose to 2.715 million in the week ended December 17 from the preceding week's revised level of 2.630 million.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks rallied on Thursday with the Nikkei in the lead, up 0.9%, hitting a multi-year high of 16,344.20 on hectic buying in expectations of strong corporate profit and robust economic growth across the region next year. South Korea’s Kospi rose 0.8%, Shanghai Composite surged 1.1%, and Taipei’s Weighted index advanced 0.8%. Hong Kong was the sole decliner, down 0.4%.

European stocks slightly advanced at mid-day, supported by resource stocks and gains from the leading German insurers Allianz and Munich Re which posted detailed earnings outlooks. The German DAX 30 gained 0.3%, followed by the French CAC 40, up 0.3%, and London’s FTSE 100 rising 0.3%.

OIL, METALS, CURRENCIES

Crude oil prices slipped ahead of oil inventory report and amid expectations that OPEC may cut production next year. Light sweet crude for February delivery lost 25 cents to $59.57 a barrel on the Nymex. London Brent slid 27 cents to $57.37.

European gold prices neared a two-week high on speculations that the central banks may buy more of the precious metal to diversify their reserve. In London gold rose to $517 per troy ounce, up from $515.20. In Zurich the precious metal advanced to $517.03 from $515.75. In Hong Kong gold gained $8.05 to close at $516.90. Silver traded unchanged at $8.59.

The U.S. dollar steadied against its major counterparts ahead of economic data. The euro was quoted at $1.1845, up from $1.1836. The dollar bought 117.90 yen, up from 117.83. The British pound traded at $1.7199, up from $1.7160.