By SAUMYA VAISHAMPAYAN
U.S. stock futures rose Thursday, boosted by gains in Europe, indicating a higher open for stocks after two sessions of declines.
Dow Jones Industrial Average futures added 36 points, or 0.2%, to 18122. S&P 500 futures rose four points, or 0.2%, to 2100, and Nasdaq-100 futures gained seven points, or 0.2%, to 4451. Changes in stock futures don’t always accurately predict moves in the stock market after the opening bell.
European stocks added to the positive tone, with France’s CAC 40 up 0.9% and Germany’s DAX advancing 0.8%.
The European Central Bank kept interest rates unchanged and investors are looking ahead to a news conference led by ECB President Mario Draghi scheduled to start at 8:30 a.m. Eastern. Policy makers are expected to provide operational details of the bond-purchase program, including when in March those purchases could begin. The euro fell to $1.1061, continuing to hover near an 11-year low against the U.S. dollar.
In economic data due Thursday, U.S. jobless claims in the latest week are expected to fall to 296,000 from 313,000 in the prior period, according to economists surveyed by The Wall Street Journal.
Many investors are awaiting Friday’s jobs report, which is expected to show the economy added 240,000 jobs in February.
U.S. stocks fell Wednesday, with the Dow industrials and S&P hitting their lowest levels in nearly two weeks. The Dow declined 0.6% to 18096.90, its biggest decline since Jan. 30, and the S&P fell 0.4% to 2098.53.
Even with this week’s declines, stocks remain within striking distance of all-time highs. While the Dow and S&P have minted several records since the financial crisis, most recently on Monday, the Nasdaq Composite has yet to surpass its all-time high from March 2000. The tech-heavy index is now just 1.6% below that milestone, as of Wednesday’s close.
U.S. stocks should continue to gain in 2015, but likely at a slower pace than in previous years, said Janet Engels, director of the portfolio advisory group at RBC Wealth Management. Driving that muted forecast are higher valuations on stocks and lowered earnings expectations for the year, as energy companies grapple with a slump in oil prices and multinationals deal with a stronger dollar, she said. “As you enter the seventh year of a bull market, the question is how much further do we have to go?” she said.
Investors eyed news about China’s growth forecast, though Ms. Engels said that was anticipated. On Thursday, China lowered its economic growth forecast to about 7% for 2015. Last year’s growth of 7.4% was the lowest level in nearly a quarter-century.
In other markets, gold futures were nearly flat at $1200.60 an ounce. Crude-oil futures rose 0.8% to $51.95 a barrel. Treasury prices fell slightly, pushing the 10-year yield up to 2.133% from 2.121% on Wednesday.
Among individual stocks, AbbVie Inc. said it would buy cancer biotech Pharmacyclics Inc. in a deal worth about $21 billion. The deal is a mix of cash and stock for $261.25 a share and is expected to close in the middle of the year. Shares of AbbVie fell 4.6% in premarket trading, while those of Pharmacyclics jumped 9.5%.
