Cigna Deal Lifts S&P 500 Nasdaq Futures; 2 Big Chip Stocks Climb

Dow futures trailed early gains made by the Nasdaq 100 and S&P 500 ahead of Thursday's start of trade, as chip stocks made some positive moves, Express Scripts (ESRX) surged on a merger deal, and earnings reports drove Burlington Stores (BURL) and Thor Industries (THO) to strong premarket gains.

Nasdaq 100 futures rose 0.5%, and S&P 500 futures were up 0.2%, both bolstered by Express Scripts' huge early leap. Futures for the Dow Jones industrial average battled out of early losses to trade 0.1% above fair value, with Intel (INTC) and Cisco Systems (CSCO) leading.

Thursday's market will have an eye on Washington, as legislators continue to wrestle the White House over tariffs set to be signed into action late today. The entire Northeast will also be an area of concern, with airlines canceling a reported 2,700 flights across the region in response to an ongoing snowstorm.

In overseas markets, stocks surged in Hong Kong, after official data showed China's export growth accelerated in February to its highest level in three years. The gains sent the Hang Seng index up 1.5%, as the benchmark attempts to stem a two-week decline.

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In Japan, Tokyo's Nikkei 225 posted a more modest 0.5% gain. Trade was mixed in Europe, with the CAC-40 in Paris up 0.5% and Frankfurt's DAX off 0.3% in afternoon trade.

In the U.S., Thursday's economic news opened with the monthly Job Cuts Report from Challenger, Gray & Christmas showing U.S. employers announced 35,369 layoffs in February. That was down 20% from January's levels, and 4% below the number of layoffs announced a year ago.

The number of layoffs has now remained below 50,000 for 22 consecutive months, the longest in the gauge's history. ""The economy is almost at full employment, and companies are holding on to their workforces," the report noted.

Weekly unemployment claims rebounded in the week ended March 3, the Labor Department estimated, rising to 231,000. That was up from the prior week's 210,000 tally - a 48-year low - and was also well above analyst consensus views for 220,000 new applications.

Cigna, Express Scripts Deal; Chips Jump; Thor, Burlington Up On Earnings

Chip stocks were in early motion, with Intel up 0.9% to lead the Dow, and as Advanced Micro Devices (AMD) posted a 1.5% premarket gain.

Intel ended Wednesday at a new high, atop four straight up days and extended 8% from a 47.40 buy point in a flat base. AMD is testing resistance at its 200-day moving average, ending just below that level after paring its early 9% gain on Wednesday.

Express Scripts burst 17% higher after Cigna (CI) confirmed it would pay $67 billion to acquire the pharmacy benefits manager. Cigna said it expects the deal, which includes $15 billion in debt, to close by the end of the year.

The move continues a massive round of consolidation and reorganization in the sector, which included CVS Health's (CVS) $68 billion purchase of Aetna (AET), the launch of Apple (AAPL) health clinics for its employees and a joint venture between Amazon.com (AMZN), Berkshire Hathaway (BRKA) and JPMorgan (JPM) to more efficiently provide healthcare services to their 1 million employees. A year ago, the courts blocked a proposed $48 billion merger between Cigna and health insurer Anthem (ANTM).

Cigna shares dipped 4.9% in premarket trade.

In earnings news, Burlington Stores buttoned up an early 9% gain. The New Jersey-based retailer reported late Wednesday fourth-quarter sales, earnings and same-store-sales above consensus projections. Burlington Stores also raised its full-year earnings guidance above analyst targets. The stock is below its 10-week moving average and in the sixth week of a consolidation.

Thor Industries fiscal second-quarter sales beat analysts' estimates, while earnings apparently came up short of views. The company said the industry was benefiting from healthy lending standards and credit availability, and from a low rate of charge-offs. Thor shares ended Wednesday 24% below their January high, consolidating just below their 40-week moving average. Shares rose 4.6% ahead of Thursday's open.

Chipmakers also topped the IBD 50 list, with Lam Research (LRCX) up 1.3% in pre-opening trade. The stock ended Wednesday 3% below a 218.58 buy point in a double-bottom base.

Another IBD 50 stock, PagSeguro Digital (PAGS) pared its early gain to 0.6%. The Brazil-based payment solutions provider, also an IBD Leaderboard name, is extended from a 30.02 buy point in an IPO base.

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