Stock Futures Climb After ECB Cuts Rates

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Published November 07, 2013

| FOXBusiness

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U.S. stock-index futures advanced on Thursday after the European Central Bank shocked traders by slicing its benchmark interest rate.

Today's Markets

As of 8:07 a.m. ET, Dow Jones Industrial Average futures jumped 85 points, or 0.54%, to 15767, S&P 500 futures advanced 8.3 points, or 0.45%, to 1774 and Nasdaq 100 futures climbed 9.3 points, or 0.28%, to 3385.

Amid all the conversation about the Federal Reserve's bond-buying program, the ECB surprised market participants by taking a play from the traditional monetary policy play book. The powerful central bank sliced its main refinancing rate by 0.25 percentage point to a record low of 0.25%. The move immediately sent the euro plunging and stock-index futures climbing. 

Elsewhere on the economic front, traders will get the first reading on third-quarter U.S. gross domestic product at 8:30 a.m. ET. Economists expect the world's biggest economy to have expanded at an annual rate of 2% over the three-month period, from 2.5% in the second quarter. 

A report from the Labor Department at the same time is forecast to show the number of individuals filing for first-time jobless benefits last week having fallen by 5,000 to 335,000. 

Both gauges will help guide the Fed as it determines when to begin paring back its giant bond-buying program. The all-important October jobs report is due out on Friday. 

On the corporate front, Twitter makes its public debut on NYSE Euronext's (NYX) New York Stock Exchange. Market participants are hoping the highly-awaited IPO will get off to a better start than Facebook (FB), which faced a slew of issues when it started trading on Nasdaq OMX Group's (NDAQ) Nasdaq Stock Market. 

In commodities, U.S. crude oil futures climbed 42 cents, or 0.44%, to $95.20 a barrel. Wholesale New York Harbor gasoline fell 0.44% to $2.537 a gallon. In metals, gold gained $5.10, or 0.39%, to $1,323 a troy ounce.  

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http://www.foxbusiness.com/technology/2013/11/07/stock-futures-climb-after-ecb-cuts-rates/