Stocks headed for higher open

NEW YORK (CNNMoney.com) -- Stocks were headed for a positive open Thursday as investors reacted to a better-than-expected report on employment.

At 8:50 a.m. ET, Dow Jones industrial average, Nasdaq 100 and Standard & Poor's 500 futures were higher. Futures had been flat ahead of the morning's economic reprots.

Futures measure current index values against their perceived future performance and offer an indication of how markets may open when trading begins.

Stocks rallied Wednesday after a report from the Federal Reserve indicated the economy is stabilizing. The S&P 500 and Nasdaq both closed at their highest levels of 2009, while the Dow ended just shy of a 10-month high.

Bruce McCain, chief investment strategist at Key Private Bank in Cleveland, said skeptical investors are searching for a reason to buy equities, but anxious that recent stock rallies have "gotten ahead of the fundamentals of the economy."

"The market seems poised on the edge of uncertainty," said McCain. "People want to be in equities, but the [higher] prices are making them reluctant to plunge in. I think it takes a while for people to shift gears and realize that the economy is not imploding - that it may in fact be in recovery today."

Economy: The Labor Department said initial jobless claims fell by a more-than-expected 26,000 in the week ended Sept. 5. The department reported that 550,000 Americans filed for their first week of unemployment benefits last week, down from the revised figure of 576,000 in the previous week.

Economists had expected 560,000 claims, according to Briefing.com consensus.

Continuing claims, a measure of those receiving benefits after the initial payment, declined to 6,080,000, from the 6,234,000 level reported last week.

The Commerce Department reported that the U.S. trade gap widened to a deficit of $31.96 billion in July. Economists were expecting it to have widened to $27.3 billion in July, according to Briefing.com consensus.

The government revised its trade balance figure for June to a deficit of nearly $27.5 billion.

On the housing front, RealtyTrac said the number of homes repossessed from borrowers fell by 12.7% in August compared to July, while the number of Americans who were late on their mortgages was down just 0.5%.

Treasury Secretary Timothy Geithner speaks before the Congressional Oversight Panel at 1 p.m. ET.

Health care: President Obama told a joint session of Congress that the nation needs a serious effort to reform health care. He offered a detailed outline of his proposals, which would include requiring all Americans to have some form of health insurance.

Company news: Procter & Gamble Co. said early Thursday that it was backing its profit forecast for the current quarter and said it expects sales to improve in the next quarter.

The maker of Tide, Crest and a host of other household name-brand products said it still expects earnings per share of 95 cents to $1 for the current fiscal first quarter, which ends Sept. 30. P&G (PG, Fortune 500) said it expects sales to be flat to down 3%.

Texas Instruments (TXN, Fortune 500) raised its earnings forecast for the third quarter to a range of $2.73 billion to $2.87 billion, or earnings per share of 37 cents to 41 cents. Its prior forecast was $2.5 billion to $2.8 billion, or EPS of 29 cents to 39 cents.

The company's stock edged up slightly in morning trading. McCain said the raised forecast might help to lift tech stocks.

World markets: Asian markets closed higher Thursday, with Tokyo's Nikkei index up nearly 2%. Major indexes in Europe were mixed in midday trading.

Oil: The price of oil rose 29 cents to $71.60 a barrel. The Energy Department will release its weekly inventory report at 11 a.m. ET. Analysts surveyed by research firm Platts predict that the nation's supplies of crude oil fell by 1.8 million barrels last week.

Currency: The dollar slipped versus major international currencies, including the euro, the yen and the British pound.