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Wall St. in the mood
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February 14, 2002: 9:01 a.m. ET
U.S. stocks could advance at the open on economic data, HP results.
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NEW YORK (CNN/Money) - Wall Street could see a triumphant Valentine's Day if some encouraging economic data, including a drop in jobless claims, and the results from computer products maker Hewlett-Packard can spur investors Thursday.
Early indications point to a higher opening for the major U.S. indexes.
In three of the past four sessions, the Dow Jones industrial average has risen more than 100 points. And the only losing session it has posted in this run was one in which huge early gains were mitigated by the closing bell.
One of the catalysts for the advance has been positive economic data. That was especially true Wednesday, when a report showing strong non-auto retail sales was a force behind the markets' rally.
On Thursday, the government said December business inventories fell 0.4 percent. Economists surveyed by Briefing.com had expected a decline of 0.5 percent.
Initial jobless claims, closely watched these days for possible signs that the economy is perking up, fell to 373,000 last week from a revised 381,000 the previous week, the Labor Department said.
One possible contributor to a rally could be Dow Jones industrial average component Hewlett-Packard (HWP: Research, Estimates). It reported fiscal first-quarter earnings late Wednesday that topped analysts' estimates. Shares of the computer products maker gained 32 cents to $21.30 in before-hours trading Thursday.
The Dow Jones industrial average begins at 9,989.67, after a gain of nearly 126 points Wednesday. The Nasdaq composite index is at 1,859.16 following an almost 25-point advance, while the Standard & Poor's 500 starts at 1,118.51, having added 11 points.
Asian stocks rallied to a stronger close Thursday, with Tokyo's Nikkei index rising above the 10,000 mark. European markets rallied at midday.
Treasury prices were little changed in early trading, with the 10-year note yield at 4.98 percent. The dollar was lower against both the yen and the euro. Brent oil futures rose 37 cents to $21.29 a barrel in London. Gold rose in London, but remained just below the $300-an-ounce level.
The Wall Street Journal reported Thursday that financial firm J.P. Morgan (JPM: Research, Estimates) is the most exposed to unsecured debt of conglomerate Tyco International (TYC: Research, Estimates), on the hook for between $700 million and $1 billion. On Wednesday, shares of J.P. Morgan closed down $1.24 to $30.25, while shares of Tyco lost $1.60 to $28.90.
Brocade Communications (BRCD: up $1.77 to $35.20, Research, Estimates) reported first-quarter income late Wednesday of five cents per share in line with estimates on revenue that fell 25 percent from the same period one year earlier. The company also said it is comfortable with second quarter revenue and earnings per share estimates. However, Credit Suisse First Boston cut its third-quarter earnings per share estimate Thursday to 55 cents from 58 cents. The stock was down 80 cents to $34.40 in before hours trade Thursday.
Intuit (INTU: Research, Estimates), a provider of tax preparation software, such as Quicken products said late Wednesday that it earned 61 cents in the second quarter, four cents better than analysts' expected and an improvement on the 48 cents earned one year earlier. The company also said it is raising guidance for 2002. Shares of Intuit added $3 to $39.96 in before-hours trade Thursday.
Whole Foods (WFMI: Research, Estimates), a natural and organic foods supermarket chain reported first-quarter earnings late Wednesday of 34 cents per share, edging estimates by a penny and improving on the 27 cents per share earned one year earlier. The company also reaffirmed growth guidance for 2002 of 15 percent to 20 percent. Shares of Whole Foods rose $1.30 to $39.16 in before-hours trade Thursday.
After the close, PC maker Dell Computer (DELL: Research, Estimates) is expected to report its quarterly results. The company's earnings are forecast to have slipped to 17 cents a share from 18 cents a share a year earlier. Dell gained 16 cents to $27.50 in before-hours trading.
A panel of the House Financial Services Committee has sent a valentine of sorts to the stock markets -- it canceled a scheduled hearing at which former Enron CEO Kenneth Lay was expected to invoke the Fifth Amendment for the second time this week.
But an executive of the failed energy trader, Sherron Watkins, is still slated to testify before another House subcommittee. It was Watkins whose letter to Lay expressing concern about the company's finances was a catalyst in its collapse.
Separately, the House of Representatives passed the campaign finance bill early Thursday. The bill is intended to curb the impact of money in politics and is seen as having been forced to the floor for consideration following the Enron debacle. 
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