Stocks poised to open higher after steep sell off | The Mesh Report

Stocks poised to open higher after steep sell off

the Mesh Report Staff March 17, 2011 0

NEW YORK – Stocks appear poised to rebound, a day after suffering their worst losses in seven months.

Stock futures rose after the government said first-time applications for unemployment benefits dropped last week. Claims fell to 385,000, a slightly bigger fall than economists had expected.

A separate report showed consumer prices edged higher in February. The government said the Consumer Price Index rose 0.5 percent last month, a tenth of a point more than forecasts as well as the January rate. Core prices, which exclude food and fuel costs, edged up 0.2 percent, the same as the previous month.

Financial markets were gripped by fear over Japan’s nuclear crisis on Wednesday, with stocks losing nearly all their gains for the year. The three major stock indexes are down 3.6 percent for the week.

The dollar dropped to an all-time low against the Japanese yen late Wednesday, reaching 76.53 yen to the dollar. By Thursday morning, the yen had weakened and was trading at 78.77 yen to the dollar. When the yen loses strength, it takes more yen to buy one dollar.

A stronger yen would hurt Japan’s exporters, potentially dealing another problem to an economy already racked by an earthquake, tsunami and evolving nuclear crisis.

Finance ministers from the Group of Seven industrialized countries are due to hold a conference call later Thursday to discuss ways to calm financial markets and possibly curb the yen’s rise.

Ahead of the opening bell, Dow Jones industrial average futures are up 108, or 0.9 percent, at 11,685. S&P 500 index futures are up 17, or 1.4 percent, at 1,271. Nasdaq 100 index futures are up 26, or 1.2 percent, at 2,235.

A service of YellowBrix, Inc.

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