Stocks set to jump on GDP

An eyeblink glance at the economy

Last quarter, the economy grew by the largest amount since the summer of 2007, but there are signs that things are still getting worse.

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NEW YORK (CNNMoney.com) -- U.S. stocks looked set for a strong open Thursday, following a report that domestic product growth jumped higher than expected in the third quarter.

S&P 500, Nasdaq-100 and Dow Jones industrial average futures were higher, with their gains increasing after the GDP report.

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

"Really good news," said Dan Cook, senior market analyst at IG Markets, in an e-mail to CNNMoney.com. "After putting trillions into quantitative easing and stimulus we had to see a number like this. I am very glad it came out positive and I think the markets should really be optimistic today and could reverse some of the losses we have seen lately."

Investors appeared ready to dip back into the market after Wednesday's slump. The Dow finished the session down 1.2% and the Nasdaq tumbled 2.7% amid worries about the strength of the economic recovery.

Economy: Thursday's GDP report showed a third-quarter annual gain of 3.5%.

GDP was expected to have grown at a 3.2% annualized rate in the third quarter after shrinking at an 0.7% annualized rate in the second quarter.

While a bounce seems impressive, it wouldn't necessarily signal a robust recovery for the economy.

The government also released its weekly figures on initial jobless claims.

For the week ended Oct. 24, jobless claims totaled 530,000, down 1,000 from the prior week's unrevised 531,000.

Earnings: Exxon Mobil (XOM, Fortune 500) said its earnings plunged to 98 cents per share in the third quarter, compared to the year-ago EPS of $2.85 per share. Revenues totaled $82.26 billion in the third quarter, the oil company said.

Procter & Gamble (PG, Fortune 500) reported a 3% gain in third-quarter diluted net earnings per share, to $1.06, but a 6% decline in net revenue, to $19.8 billion, compared to the year-ago quarter. The company stock edged up in pre-market trading.

Companies on tap to report results include Sprint Nextel (S, Fortune 500).

World markets: Economic worries weighed on stocks in Asia and Europe. Japan's Nikkei shed 1.8% and major European indexes were lower in midday trading.

Money and oil: The dollar was lower versus the euro and the pound, but rose against the yen. The price of oil rose 14 cents to $77.60 a barrel.