Stock Futures Up On Greece Reports (MCD, WSM, DYN, SMTX, AGNC, KTOS)
Major U.S. Indices set to open sharply higher on Thursday on reports that Greek debt swap attracted high percentage of participation on the final day of the deadline. However, stock futures cooled off following U.S. jobless claims data.
Dow Industrial Average 66 points, or 0.50%, to 12,907. Futures for the Standard & Poor’s 500 index 9.50 points, or 0.7%, to 1,362.25. Nasdaq 100 futures added 16 points, or 0.6%, to 2,625.
This morning, In U.S . Initial claims jumped 8,000 to a seasonally adjusted 362,000 in the week ended March 3, the Labor Department said. Claims from two weeks ago were revised up to 354,000 from 351,000 previously, compared o Economists’ estimates of a rise to 355,000 for last week.
As per Reuters, private bond holders participation has been significantly higher, adding that the government was optimistic ahead of a 3 p.m. EST (2000 GMT) deadline. A debt restructuring is a key element in an international rescue package.
Also, The Bank of England kept its lending rate and asset-purchase program unchanged, in line with markets estimations, while the European Central Bank is also expected to keep rates on hold when it will announces its decision at 7:45 a.m. Eastern.
Investors would also watch out for ECB President Mario Draghi’s comments o be held later today.
Important data is due on Friday as U.S. nonfarm payrolls is set to report for February, for which economists are projecting growth of 213,000.
In earnings, Williams-Sonoma, Inc. (NYSE:WSM) shares are down in the pre market session after the company posted profit of $1.08 a share on an adjusted basis on revenue of $1.27 billion in its fourth quarter, missing analysts’ estimates of $1.13 a share on revenue of $1.25 billion. For the first quarter, the company projects to earn $0.29 to $0.32 a share on total net revenues in a range of $800 million to $820 million, again missing analysts’ target of $0.33 and revenue of $805.21 million.
McDonald’s Corporation (NYSE:MCD) shares slid 3.30% to $96.80 after the company said that its global revenue grew 7.50% in February thanks to an extra day in the Leap Year and new menu items like the Chicken McBites. U.S. growth outpaced that in Europe and Asia. In U.S. same-store sales grew 11.10%, 4% in Europe and 2.4% in the Asia, the Middle East and Africa region.
Dynegy Inc. (NYSE:DYN) reported a loss of $1.38 billion or $11.29a share on revenue of $238 million in its fourth-quarter, well above the analysts’ loss of $0.16 a share on revenue of $572.62 million. The company said these results include pre-tax, unrealized, net mark-to-market losses of $35 million and mark-to-market losses of $105 million in the fourth quarter of 2011 and 2010, respectively.
SMTC Corporation (USA)(NASDAQ:SMTX) popping up over 205 after the company reported a profit of 18 cents a share on revenue of $71.1 million, compared to a year profit of 28 cents a share on revenue of $$64.63 million. Going forward, the company projects to earn $0.17-$0.19 on revenue of $72-$74 million in the current quarter. For the full year, the company expects $0.53-$0.65 a share on revenue of $250-$270 million, upped from its previous guidance of $0.47-$0.59 on revenue of $240-$260 million.
In the corporate news, American Capital Agency Corp. (NASDAQ:AGNC) shares slid 2.71% to $29.45 after it announced its plans to make a public offering of 54M common shares, net proceeds from which the REIT says will be used to acquire additional agency securities and for general corporate purposes.
Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) rose 13% to $6.70 after the company reported a profit of 17 cents a share on an adjusted basis on revenue of $218.2 million in its fourth-quarter, well ahead of analysts’ estimates of a profit of a penny on revenue of $230.7 million for the quarter. The company projects to generate full year revenue of $950 million to $1.00 billion, topping analysts’ target of $938.57 million.