* Facebook slumps in premarket after earnings
* Initial jobless claims, Chicago PMI data on tap
* Futures: Dow up 5 pts, S&P off 0.5 pt, Nasdaq off 7 pts
By Chuck Mikolajczak
NEW YORK, Jan 31 U.S. stock index futures were
little changed on Thursday ahead of data on the labor market and
a slew of corporate earnings reports.
Facebook Inc shares lost 4.6 percent to $29.83 in
premarket trading. The company doubled its mobile advertising
revenue in the fourth quarter but that growth trailed some of
Wall Street's most aggressive estimates.
Qualcomm Inc gained 6.3 percent to $67.55 in
premarket trading after the world's leading supplier of chips
for cellphones beat analysts' expectations for quarterly profit
and revenue and raised its financial targets for
Investors will look to weekly initial jobless claims data at
8:30 a.m. ET (1330 GMT) for clues on the health of the labor
market ahead of the payrolls report on Friday. Economists in a
Reuters survey forecast a total of 350,000 new filings compared
with 330,000 in the prior week.
The S&P 500 is up 5.3 percent for the month, as
legislators in Washington temporarily sidestepped a "fiscal
cliff" of automatic tax increases and spending cuts that could
have derailed the economic recovery, and amid improving economic
data and better-than-expected corporate earnings.
But the benchmark index has stalled recently and is
virtually flat for the week, hovering near the 1,500 mark, as
investors look for more catalysts to justify further gains.
"We've got a handful of economic data today that might move
the needle for the market and we've got plenty to contemplate as
we continue to get through a plethora of earnings reports as
well, so I'm not surprised to see us sideways," said Art Hogan,
managing director of Lazard Capital Markets in New York.
"Whether you look at the fears over sequestration (broad
government spending cuts set to take effect March 1) which is
next month's business, or you consider the jackrabbit start to
the year that is not sustainable, or you start to contemplate
the weak patches in the economic data stream that we have seen
in pieces - all of that combines for a wall of worry for this
market to climb and it's building."
Also at 8:30 a.m. (1330 GMT), the Commerce Department will
release December personal income and spending data; economists
expect a 0.8 percent rise in income and a 0.3 percent increase
United Parcel Service Inc lost 2.1 percent to $79.49
in premarket trading after the world's largest parcel delivery
company reported a net loss in the fourth quarter after a $3
billion one-time charge from pension accounting, and forecast
that 2013 earnings would rise 6 percent to 12 percent.
Later in the session at 9:45 a.m. (1445 GMT), the Institute
for Supply Management Chicago releases January index of
manufacturing activity. Economists in a Reuters survey forecast
a reading of 50.5 compared with 50.0 in December.
S&P 500 futures fell 0.5 point and were slightly
below fair value, a formula that evaluates pricing by taking
into account interest rates, dividends and time to expiration on
the contract. Dow Jones industrial average futures rose 5
points, and Nasdaq 100 futures lost 7 points.
Thomson Reuters data through Wednesday morning shows that of
the 192 companies in the S&P 500 that have reported earnings
this season, 68.8 percent have exceeded expectations, a higher
proportion than over the past four quarters and above the
average since 1994.
Overall, S&P 500 fourth-quarter earnings are forecast to
have risen 3.8 percent. That's above the 1.9 percent forecast
from the start of the earnings season, but well below a 9.9
percent fourth-quarter earnings growth forecast on Oct. 1, the
WMS Industries Inc surged 56.2 percent to $25.57 in
premarket after the company agreed to be acquired by Scientific
Games Corp for $26 per share in cash. Scientific Games
advanced 1.8 percent to $9.09.