By Anora Mahmudova and Sara Sjolin, MarketWatch

ECB's Draghi reasserts to "fully implement" asset-buying program

U.S. stock futures extended earlier gains Thursday after a bigger-than-expected increase in weekly jobless claims and dovish comments from the European Central Bank President Mario Draghi.

The ECB kept interest rates unchanged as expected at its policy-setting meeting, with attention now turning to Mario Draghi's news conference at 8:30 a.m (http://blogs.marketwatch.com/thetell/2015/09/03/ecb-live-blog-will-china-worries-falling-oil-spark-more-easing/). Eastern.

Draghi during the news conference reasserted the ECB is ready to "fully implement" its asset-buying program, which intended to run to September 16 "or beyond" if necessary.

Wednesday's private-sector jobs report as well as jobless claims point to improving labor market and set the tone to Friday's official payrolls.

The early gains in futures follows an upbeat session in Asia, where the volatile Chinese markets are closed for two days.

Futures for the Dow Jones Industrial Average climbed 109 points, or 0.7%, to 16,440, while those for the S&P 500 index added 13 points, or 0.6%, to 1,959.25. Futures for the Nasdaq-100 index gained 25 points, or 0.6%, to 4,284.50.

The indicated advances come after all three benchmarks closed Wednesday firmly higher (http://www.marketwatch.com/story/dow-futures-jump-almost-100-points-as-us-stocks-look-set-for-rebound-2015-09-02), after the Federal Reserve's Beige Book painted a more optimistic economic picture (http://www.marketwatch.com/storyno-meta-for-guid) of the U.S. economy than analysts had feared. The report soothed worries about the possible impact of the slowdown in China, which has taken a toll on markets in recent weeks.

Treasury Secretary Jacob Lew said in a CNBC interview aired Thursday morning that he is keeping a "careful eye on market volatility" (http://www.marketwatch.com/story/treasurys-lew-stress-in-financial-markets-no-cause-for-immediate-concern-2015-09-03-6912647) and looking at any related risk to the U.S. economy.

Read: As investors flee China, they should consider India (http://www.marketwatch.com/story/as-investors-flee-china-they-should-consider-india-2015-09-02)

On Thursday, stock markets in the world's second-largest economy were closed for China's World War II victory day parade (http://www.marketwatch.com/story/china-to-close-stock-market-to-honor-world-war-ii-anniversary-2015-09-01), providing "much desired respite from the economy and market that has been at the heart of the elevated global volatility of late," said analysts at Accendo Markets in a note.

U.S. data: The number of people who applied for U.S. unemployment benefits rose at the end of August to the highest level in two months, but initial claims are still at very low levels that indicate companies aren't laying off many workers.

The U.S. trade deficit fell by 7.4% in July to a seasonally adjusted $41.9 billion, mainly because of lower imports such as cellphones and pharmaceutical products.

The ISM nonmanufacturing -- or services -- reading is slated for 10 a.m. Eastern and is predicted to come in at 58% in August, down from 60.3% in July (http://www.marketwatch.com/story/ism-services-index-surges-to-10-year-high-in-july-2015-08-05).

Investors and analysts are tracking data out of the U.S., trying to gauge whether the indicators weaken or strengthen the case for raising interest rates this month. The highlight this week is Friday's closely watched nonfarm-payrolls report, one of the key measures the Fed is watching as it considers a rate increase.

Movers and shakers: Ahead of the market open, Campbell Soup Co.(CPB) reported fiscal fourth-quarter profit that beat analyst expectations (http://www.marketwatch.com/story/campbell-soup-beats-profit-expectations-matches-on-sales-2015-09-03).

Geron Corp.(GERN) surged 22% premarket after the biotech company late Wednesday said the New England Journal of Medicine was going to publish two papers showing positive results for its drug imetelstat.

And in the banking sector, proxy advisory firm Glass Lewis & Co. is recommending shareholders vote against a board proposal by Bank of America Corp.(BAC) that would let the bank's chief executive, Brian Moynihan, keep the title of chairman. Bank of America shares were 0.9% higher ahead of the bell.

Lannett Co. Inc.(LCI) jumped 17% premarket after the pharmaceutical company said it'll buy UCB SA's (UCB.BT) Kremers Urban Pharmaceuticals Inc. for $1.23 billion (http://www.marketwatch.com/story/lannett-to-acquire-ucbs-kremers-urban-unit-2015-09-02-184854134).

Costco Wholesale Corp.(COST) could also be active after the warehouse retailer said late Wednesday sales in stores open at least a year grew significantly during fiscal 2015 (http://www.marketwatch.com/story/costco-same-store-sales-rose-significantly-in-2015-2015-09-03).

Other markets: Asian markets closed mostly higher (http://www.marketwatch.com/storyno-meta-for-guid), inspiring gains across Europe's equity benchmarks (http://www.marketwatch.com/story/european-markets-rise-as-investors-wait-for-qe-hints-from-draghi-2015-09-03) as well. Markets in Shanghai and Hong Kong were closed for a two-day holiday to mark the 70th anniversary of the end of the World War II.

Crude oil inched lower, retracing from a 1.9% gain from Wednesday (http://www.marketwatch.com/story/brent-back-below-50-as-oil-prices-keep-sliding-2015-09-02).

Gold also dipped, while the dollar traded mixed against other major currencies.

 

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(END) Dow Jones Newswires

September 03, 2015 09:13 ET (13:13 GMT)

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