Stocks Likely To See Early Strength On ECB Stimulus Plan - U.S. Commentary

(RTTNews) - After moving higher over the course of the three previous sessions, stocks are likely to see some further upside in early trading on Thursday. The major index futures are currently pointing to a sharply higher open for the markets, with the Dow futures up by 122 points.

The upward momentum for the markets comes following European Central Bank President Mario Draghi's announcement of an expanded asset purchase program.

Draghi said the ECB will purchase 60 billion euros per month worth of investment grade sovereign bonds beginning in March.

The expanded asset purchase program is currently scheduled to last until September of 2016, although Draghi said purchases would continue until there is a sustained improvement in inflation.

The news out of Europe has largely overshadowed a recent report from the Labor Department showing a modest drop in first-time claims for U.S. unemployment benefits in the week ended January 17th.

The report said initial jobless claims fell to 307,000, a decrease of 10,000 from the previous week's revised level of 317,000.

Economists had expected jobless claims to slide to 300,000 from the 316,000 originally reported for the previous week.

On the earnings front, American Express (AXP) and eBay (EBAY) may be in focus after releasing their quarterly results after the close of Wednesday's trading.

Additionally, Travelers (TRV), United Continental (UAL), and Verizon (VZ) are among those reporting their results before the start of today's trading.

Stocks fluctuated over the course of the trading day on Wednesday but managed to end the session mostly higher. With the gains, the major averages closed in positive territory for the third consecutive session, although they remain well off their recent highs.

The major averages moved roughly sideways going into the close, hovering above the unchanged line. The Dow edged up 39.05 points or 0.2 percent at 17,554.28, the Nasdaq rose 12.58 points or 0.3 percent to 4,667.42 and the S&P 500 climbed 9.57 points or 0.5 percent to 2,032.12.