Stocks set to rise as GDP surges
Second-quarter GDP revised to annual increase of 3.3%, much higher than expected. Oil prices pushed higher on Gustav threat.
NEW YORK (CNNMoney.com) -- Stock futures pointed to a strong open on Thursday after the government reported that the second-quarter GDP surged to a surprising annual rate of 3.3%.
With 20 minutes before the market open, stock futures for all three major indexes pointed to a higher open. Before the GDP report, futures had been mixed to lower.
On Wednesday, stocks rallied as investors focused on a strong report on durable goods orders. Also on Wednesday, oil prices rose $1.88 a barrel to $118.15 amid fears that Tropical Storm Gustav would resume hurricane status and interrupt production in the Gulf of Mexico.
Economy: The Commerce Department announced the revised gross domestic product figure for the second quarter rose to an annual rate of 3.3%, beating estimates. Economists surveyed by Briefing.com were forecasting an annual rate of increase of 2.7% in the quarter, up from the 1.9% growth first reported last month.
The GDP is the broadest measure of the nation's economic activity.
Also Thursday morning, the Labor Department reported 425,000 initial jobless claims for the week ended Aug. 23, matching expectations from a consensus of economists. The figure is down from 432,000 the prior week.
Companies: The department store retailer Sears Holdings (SHLD, Fortune 500) reported a 62% plunge in second-quarter net profit to $65 million, or 50 cents per share, from $173 million, or $1.15 a share, in the year-ago quarter. Chief Executive Bruce Johnson blamed the decline on the "slowing economy." Still, the results topped expectations. Analysts had estimated a profit of just 33 cents a share.
Tiffany & Co. (TIF) also beat expectations. The jewelry company reported a 31% surge in second quarter net earnings to 63 cents per share. Thomson's consensus of analysts expected a 22% gain in earnings for Tiffany, to 55 cents per share.
Williams-Sonoma (WSM) topped estimates as well - albeit barely. The retailer said that second-quarter earnings fell 65% to 8 cents per share, excluding the benefit from selling off corporate aircraft. Thomson's consensus of analysts expected a 69% plunge for Williams-Sonoma to 7 cents per share.
The computer company Dell (DELL, Fortune 500) is expected to report after the markets close. Thomson's consensus of analysts projects a 13% increase in earnings for Dell, to 36 cents per share.
Oil: Oil prices were up $1.95 to $120.10 a barrel as Tropical Storm Gustav churned through Caribbean near Jamaica. The storm is predicted to enter the Gulf of Mexico this weekend, sparking concern that it could disrupt the oil platforms that provide one-quarter of America's oil supply.
The European and Asian markets were mixed. The U.S. dollar was down versus the euro, the Japanese yen and the British pound. 
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