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Stock Futures Positive; Blue Chip Biotech Leaders Get Upgrades

Stock futures edged higher Thursday as the major indexes again eyed new highs but kept expectations contained ahead of Friday's pending payrolls report.

[ibd-display-video id=2326958 width=50 float=left autostart=true] Futures for the Dow Jones industrial average, the S&P 500 and the Nasdaq all inched up to fractional gains. Small caps outpaced the general action, sending Russell 2000 futures ahead 0.3%.

The Nasdaq, Dow and S&P 500 all continue to tick off new highs. The Nasaq and S&P 500 each logged a seventh straight daily advance on Wednesday. That's the S&P 500's second seven-day run since August. It's the Nasdaq's longest rally since a 10-day run up in July.

In addition, the Dow and the S&P 500 are each working on their fourth straight weekly advances. That marks the best string of weeks for the S&P 500 since March, and the Dow's longest run since June.

Microsoft, Biogen Get Upgrades; Shopify Drops

The best early move among Dow industrials came from Microsoft ( MSFT ), up 1% after Canaccord Genuity upgraded the stock to buy, from hold. Microsoft has been attempting to muster the volume support necessary to break clear of a 74.52 flat base buy point.

Apple rose 0.4%, while Netflix ( NFLX ) led the FANG stocks with a 0.6% gain. Netflix posted a strong, 3% gain on Wednesday, lifting shares to within 3% of a 190.05 buy point .

Crane maker Manitowoc ( MTW ) hoisted a 5% premarket advance. Auto racecourse operator International Speedway ( ISCA ) rolled out a 9% gain.

Drug stock ratings changes determined the hot and cold ends of the S&P 500 in premarket trade.

Biotech drug maker Biogen ( BIIB ) popped 2% to lead the index. Morgan Stanley upgraded the stock to overweight, from equal weight and raised its price target to 375, from 311. Biogen ended Wednesday's session poised for a rebound , in a test of support at its 10-week moving average.

Celgene (CELG) dropped 3% to the bottom of the list, after Morgan Stanley trimmed its rating to underweight, from equal weight. The IBD 50 stock ended Wednesday just beyond buy range, after clearing a 139.10 buy point Sept. 1.

Corcept Therapeutics (CORT) rose 1.5% to lead the IBD 50 list. A five-week run has left the biotech stock extended , following an August rebound from support at its 10-week moving average.

Shopify (SHOP) dropped 2% in the premarket session. The maker of online platforms for small businesses dived 11% in massive trade Wednesday, after a negative report from short-seller Citron .  The move pierced the stock's 10-week moving average, triggering a sell signal .

September Layoffs, Weekly Jobless Claims Dip

The market receives a healthy dose of economic news and Federal Reserve Commentary today, but investors are likely to limit their response until the Labor Department's September payrolls report rolls out on Friday.

The number of layoffs announced by U.S. employers dropped 4% from August to September, to 32,346, according to consultant Challenger, Gray & Christmas.  The number was 27% below year-ago levels, and brought total layoffs during the third quarter 94,478, down 6% from Q2 and 23% lower than last year's Q3.

First-time unemployment claims dropped to 260,000 in the week ended Sept. 30, the Labor Department reported, down from 272,000 in the prior week and below consensus views for 265,000 new claims. Continuing claims increased slightly to 1.938 million.

The U.S. trade deficit narrowed slightly in August, to $42.4 bil., according to Commerce Department estimates. That was down from $43.6 bil. in July and slightly better than estimates for $42.5 bil.

August factory orders numbers are also due from the Commerce Department at 10 a.m. ET.

Federal Reserve Governor Jerome Powell and Fed Bank Presidents John Williams and Patrick Harker are all scheduled to speak at separate conferences with starting times set between 9:10 a.m. and 9:30 a.m. ET.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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