MARKET SNAPSHOT: U.S. Stocks: Futures Inch Up Ahead Of ECB Meeting; Jobless Claims Due

By Carla Mozee, MarketWatch

Potential for an ECB surprise keeps investors on edge

LONDON (MarketWatch) -- U.S. stock futures inched up Thursday, but trading was cautious as Wall Street awaited the possibility that a flood of liquidity will be unleashed in Europe.

Also on tap will be quarterly reports from Dow industrials components Verizon Communications Inc. and Travelers Cos., and a weekly labor-market update.

Futures for the Dow Jones Industrial Average (DJH5) rose 26 points to 17,517, and those for the S&P 500 index (SPH5) were up 3.1 points to 2,029.70. Futures for the Nasdaq 100 (NDH5) gained 2.5 points to 4,185.25.

Given recent surprises from the Swiss National Bank, the Bank of Canada and the Bank of England, a cautious stance from investors was understandable ahead of the European Central Bank decision.

A bond-buying plan is expected to be unveiled by the ECB as it grapples with stubbornly low inflation levels and lackluster economic growth. The ECB's executive board is proposing bond purchases of roughly 50 billion euros ($58 billion) a month for a minimum of one year, The Wall Street Journal reported Wednesday.

Opinion: As central banks surprise, Fed may have to throw in the towel

European stocks have hit multi-year highs ahead of the announcement, but it could be that the ECB is "unlikely to satisfy these hopes," said analysts at ESN Investment Research in a note to clients. "This is set to fuel profit taking in the short term. We advise investors to, at least, cover portfolios and/or buy volatility."

The policy decision is expected at 12:45 p.m. London time, or 7:45 a.m. Eastern Time. ECB President Mario Draghi will hold a press conference at 1:30 p.m. London time.

The rollout of U.S. economic data will begin at 8:30 a.m. Eastern Time, with weekly jobless claims due from the Labor Department. Economists polled by MarketWatch expect initial claims to fall to 298,000. But if they remain well above 300,000 it could cause some concern related to layoffs.

At 9 a.m. Eastern, the Federal Housing Finance Agency will issue its index on home prices for November. Then at 9:30 a.m. Eastern, data firm Markit will release its flash manufacturing snapshot for early January.

A quarterly report is due from property-casualty insurer Travelers (TRV), which is forecast to post earnings of $2.54 a share in the fourth quarter. Mobile-services provider Verizon (VZ) is projected to report fourth-quarter earnings of 71 cents a share.

On Wednesday, stocks closed higher after a choppy session. The S&P 500 index (SPX) rose 0.5%, the Dow Jones Industrial Average (DJI)gained 0.2% and the Nasdaq Composite (RIXF) added 0.3%.

Stocks to watch:eBay Inc. (EBAY) late Wednesday reported adjusted fourth-quarter earnings of 90 cents a share on revenue of $4.92 billion. It also said it will cut 7% of its workforce, or 2,400 jobs from eBay Marketplaces, PayPal, and eBay Enterprise this year.

American Express Co.(AXP) after the bell Wednesday reported fourth-quarter earnings rose to $1.45 billion, or $1.39 a share. Revenue rose 7% to $9.11 billion, with as card member spending rose 6%.

Other markets: Hong Kong stocks overnight hit a four-month high. Oil futures (CLH5) turned modestly higher, nearing $48 a barrel and gold futures (GCF5) were lower.

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