By Chuck Mikolajczak
NEW YORK (Reuters) - U.S. stocks were poised for a modestly lower open on Thursday after the S&P 500 notched its biggest gain in a month and following data on the labor market and durable goods.
Durable goods orders dropped 18.2 percent in August, the largest decline since the series started in 1992, which partially reversed the aircraft-driven 22.5 percent surge in the prior month. However, business spending plans rebounded.
Initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 293,000 for the week ended Sept. 20, below the 300,000 forecast, indicating an acceleration in job growth for the month.
"If you look at the jobless claims, it is still pretty much indicating that the jobs market expansion is continuing, and that is key," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
The S&P 500 <.SPX> snapped a three-day losing streak on Wednesday in a broad advance, led by healthcare and biotech stocks, with gains in the housing sector also providing support after surprisingly strong data. The index managed to successfully hold its 50-day moving average around the 1,976 mark that was tested during the lows of the session.
"Yesterday the markets certainly had a good day and indicated some of the lower levels around the S&P in the 1,970 to 1,980 region have held several times, this is an important factor," said Cardillo. "What the market is in tune to here is the fact that the pullbacks remain shallow."
S&P 500 e-mini futures
At 9:45 a.m. EDT, financial data firm Markit will release its preliminary services Purchasing Managers Index for September. The estimate stands at 59 against the final 59.5 reading for August.
Jabil Circuit
Earnings are expected after the closing bell from Micron Technology
LabCorp
(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama and Nick Zieminski)
