MARKET SNAPSHOT: U.S. Stocks: Futures Recover Losses After GDP, Claims

By Barbara Kollmeyer, MarketWatch

NEW YORK MarketWatch) -- U.S. stock futures trimmed early losses on Thursday, as investors digested robust economic reports a day after the Federal Reserve officially announced the conclusion of its bond-purchasing initiative.

Confirming the Fed's optimistic view on the economy, the first reading of third-quarter GDP came in better than expected, expanding at 3.5% annualized rate. Weekly jobless claims ticked up, however remain below the 300,000, pointing to an improving labor market.

Futures for the S&P 500 index (SPZ4) fell 3 points to 1,968.10, while those for the Dow Jones Industrial Average (DJZ4) fell 22 points, or 0.1%, to 16,901. Dow industrials component Visa might temper some of the Dow's losses in Thursday trading, after the credit card company reported better than expected quarterly results late Wednesday.

Meanwhile, Futures for the Nasdaq-100 index (NDZ4) were off 10 points to 4,062.50.

On Wednesday, Wall Street stocks finished with marginal losses,after the Fed ended its controversial stimulus program, known as quantitative easing, or QE. However, the central bank surprised some with a more upbeat view on the labor market and inflation. The Fed said it could raise interest rates sooner than markets have forecast, if the economy expands faster than it expects.

More volatility coming? Jim Reid, strategist at Deutsche Bank, said the surprise was that the Fed chose to be so confident so soon after the recent volatility. "Last night's statement would have been near impossible to publish two weeks ago, so it is a bit of a risk," he said in a note. Four reasons the market will rally for the rest of 2014

"At a minimum, the Fed seem quite comfortable withdrawing liquidity from the market, and with that, we continue to think that bouts of volatility are more likely now than they were for most of the two years that QE3 was in existence," said Reid. Economists reactions to Fed statement: Signs of hawkishness

Earnings: Shares of Visa Inc.(V) rose 3.5% in premarket trade after the company's earnings and revenue beat forecasts.

Avon Products Inc.(AVP) topped Wall Street profit estimates as it reported positive results in Europe.

MasterCard Inc. (MA) beat analysts' forecasts for third-quarter profit and sales.

ConocoPhillips (COP) topped profit estimates and affirmed its margin outlook.

Kellogg Co.(K) profit topped profit estimates, excluding an accounting charge. Sales slightly missed estimates.

Lakeland Industries Inc.(LAKE) was up another 32% in thin premarket trade, following a big jump in late trade after the hazmat-suit maker reported increased manufacturing capacity in response to the Ebola crisis. Alpha Pro Tech Ltd.(APT) was up as well, by around 15%.

GoPro Inc.(GPRO)(GPRO) and LinkedIn(LNKD) are expected to report after the market's close. (Read more about the day's notable stocks in Movers & Shakers column: http://www.marketwatch.com/story/groupon-linkedin-expedia-earnings-in-focus-2014-10-30.)

Dollar up, gold slides: The dollar rose against the euro (EURUSD) and the yen (USDJPY) -- briefly tapping its highest levels since early October against the Japanese currency -- as investors absorbed the Fed outcome. Gold(GCZ4) slid 1.7%, while crude-oil prices(CLZ4) were off nearly 1%.

European stocks pulled back, while Asian stocks saw mostly moderate gains, outside of a 0.4% drop for Hong Kong's Hang Seng Index .

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