Stocks expected flat as investors take breather after election

October jobless data become the focus amid solid earnings.
NOV 07, 2014
Stock-index futures were little changed early Thursday after the Standard & Poor's 500 Index rose to a record, as investors awaited the European Central Bank's policy meeting for clarity on stimulus measures. Qualcomm Inc. slid 6.2% in premarket trading after saying a Chinese government probe will curb 2015 profit. Tesla Motors Inc. rallied 5.9% after predicting “several years” of 50% sales growth amid a surge in orders. Whole Foods Market Inc. jumped 7.3% after posting better-than-expected quarterly profit. S&P 500 (SPX) futures expiring in December lost 0.1% to 2,016.1 at 10:57 a.m. in London. Dow Jones Industrial Average contracts lost 10 points, less than 0.1%, to 17,403. “After the spectacular recovery observed since mid-October, the market really looks overbought,” said Pierre Mouton, who helps oversee $8 billion at Notz Stucki & Cie. in Geneva. “But the fundamentals remain very favorable. The underlying businesses are good, and it is highlighted by the results I've seen from domestic companies. [ECB President Mario] Draghi has been very good until now. There are some more steps that can be taken, but he's done a great job.” Mr. Draghi faces pressure to do more to support a slowing euro-area economy after the Bank of Japan last week unexpectedly boost its stimulus plan. More than half the respondents in a Bloomberg survey last month predicted the central bank will eventually start large-scale sovereign bond purchases. Mr. Draghi speaks at 2:30 p.m. Frankfurt time. ELECTION, EARNINGS The S&P 500 climbed to a record Wednesday after election results shifted control of the Senate from Democrats to Republicans while a report showed improvement in the labor market. Better-than-expected earnings have also helped spur the gauge almost 9% from an October low. Investors are also awaiting a report at 8:30 a.m. in Washington that may show fewer Americans filed for jobless benefits. First-time claims fell to 285,000 in the week ended Nov. 1 from 287,000 the previous week, according to economists surveyed by Bloomberg. Labor Department figures tomorrow may show nonfarm payrolls rose 235,000 last month and that the jobless rate probably held at a six-year low.

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