Labor report sets encouraging tone on Wall Street

[bushisanidiot]

more good news..

http://finance.yahoo.com/news/Labor-report-sets-encouraging-apf-2580591674.html?x=0

"NEW YORK (AP) -- The latest look at the labor market could sway Wall Street Thursday.

Before the opening bell, the Labor Department said first-time claims for unemployment benefits fell last week to 420,000, the third drop in four weeks. That's roughly in line with what economists expected but is another sign of an economy slowly gaining its footing.

A shift in the figure often has an outsize impact on markets. Last Thursday, a drop in claims to 421,000, the second-lowest level this year, helped give stocks a lift in early trading. But the enthusiasm tapered off in the afternoon.

The ranks of those applying for unemployment benefits have steadily declined over the past two months. Claims dropped to 410,000 in late November, the lowest level in more than two years. Economists say the figure has to stay below that level for much longer before it will put a dent in the country's 9.8 percent unemployment rate.

A bill to extend Bush-era tax cuts along with unemployment benefits is headed to a vote in the House of Representatives Thursday afternoon. The Senate passed the bill Thursday. The tax package, a compromise worked out between President Barack Obama and Senate Republicans, is expected to boost economic growth next year but also widen the budget deficit.

House Democratic leaders say they'll pass the bill, but only after first voting whether to raise the proposed rate for the estate tax.

Before the opening bell, Dow Jones industrial average futures are up 5 points, or 0.04 percent, to 11,483. S&P 500 index futures are up 0.6, or 0.05 percent, to 1,232. Nasdaq 100 futures are up 3.25, or 0.15 percent to 2,204.

In corporate news, FedEx Corp. said its fiscal second-quarter earnings tumbled 18 percent on rising costs and one-time charges, but raised its prediction for the full-year. Its results missed Wall Street estimates, and its shares fell more than 2 percent in pre-market trading.

General Mills Inc. reported higher net income in the second quarter, but earnings and revenues were below what analysts expected. Higher commodity costs weighed on earnings."