MARKET SNAPSHOT: U.S. Stocks: Futures Gain; Jobless Claims Drop

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks opened higher on Thursday, sending the S&P 500 and Dow Jones Industrial Average above their previous closing highs.

Investors cheered China's efforts to boost economic growth, while upbeat jobs data outweighed weakness in U.S. housing.

The S&P 500 (SPX) added 7 points, or 0.4%, to 2,008. The Dow Jones Industrial Average (DJI) gained 52 points, or 0.3%, to 17,220. The Nasdaq Composite (RIXF) began the day up 16 points, or 0.4%, to 4,570.

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Better-than-expected reading on jobless claims was countered by disappointing data from the housing market. Applications for jobless benefits dropped to the lowest level since mid-July, signaling that employers are laying off very few workers, according to government data released Thursday.

However, construction started on new U.S. homes tumbled in August, pulling back after a surge in July, signaling some shakiness in the housing market's recovery, according to government data released Thursday.

China's central bank cut short-term borrowing costs for banks on Thursday, the same week it announced a cash injection into the country's five biggest banks. For markets, this is a "massive statement of intent," amid growth concerns for the country, said Craig Erlam, market analyst at Alpari U.K.

At 10 a.m. Eastern, the Federal Reserve Bank of Philadelphia September monthly reading on regional manufacturers is due and expected to weaken from August.

(Also see: Credit Suisse sticks to stocks, but sees a correction ahead http://blogs.marketwatch.com/thetell/2014/09/17/credit-suisse-sees-sp-500-correction-coming-in-2015-but-sticks-to-stocks/?link=instory.)

Stocks to watch: Alibaba (BABA) is expected to start trading on the New York Stock Exchange on Friday morning. The initial public offering could raise over $25 billion, making it the biggest ever. Yahoo! Inc (YHOO) which has a nearly 23% stake in Alibaba has been riding the pre-IPO wave and rose 1.24%. Also read: Alibaba IPO gives insiders rare chance to sell early

Rite Aid Corp.(RAD) is tumbling 14% after the drugstore chain slashed its outlook, blaming generic drugs.

Pier 1 Imports Inc. (PIR) sank 17% after earnings fell short of hopes and the company cut its forecast for the year late Wednesday. (Read more about the day's notable movers here http://www.marketwatch.com/story/epiq-surges-on-activist-stake-rite-aid-sinks-2014-09-18.).

Other markets: The FTSE 100 edged lower as Scottish voters headed to the polls, with indications still pointing to a narrow victory for unionists.

European stocks also got a lift from China's cut in borrowing costs. Japanese stocks climbed to an eight-month closing high, as the yen(USDJPY) hit a six-year low against the greenback, aiding export-related stocks.

The euro (EURUSD) held steady after the European Central Bank allotted 82.6 billion euros in the first round of its new four-year loans, though that take-up fell short. Gold prices (GCZ4) fell 1%, pressured by a strong dollar.

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