Futures rise as jobless claims dip

NEW YORK, Mar 22 (Reuters) U.S. stock futures rose modestly on Thursday after data showed jobless claims unexpectedly fell, a sign of strength in the labor market that could lead to growth in corporate profits.

In addition, KB Home, the No. 5 U.S. home builder, posted quarterly earnings that beat Wall Street's forecasts, sending its stock up 2.5 percent before the opening bell. For details, ID:nN22329963 But Motorola Inc. was set to put pressure on technology stocks after the world's No. 2 mobile phone maker forecast a quarterly loss. Higher crude oil prices could also keep investors on edge, although energy companies such as Exxon Mobil Corp. are likely to benefit.

''Today's jobless claims number didn't hurt the market,'' said Barry Hyman, equity market strategist, EKN Financial Services Inc. in New York.

S&P 500 futures rose 4 points, above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures were up 44 points, and Nasdaq 100 futures were up 1.50 points.

U.S. crude for May delivery was up 87 cents at .48 in electronic trade.

KB Home shares jumped 2.5 percent to in electronic trade. Other companies due to post earnings include Nike Inc.

and Palm Inc after the bell.

February Leading Indicators is scheduled for release at 10 a.m. (1400 GMT).

While fears about spreading turmoil in the subprime mortgage market have subsided, the topic will again be in focus as managers of major lenders appear at a Senate hearing.

ID:nN21264322. For more about the subprime mortgage story, see ID:nN07265694.

Also on tap is an appearance by Fed Chairman Ben Bernanke at a credit risk conference at 9:20 a.m. (1320 GMT).

The Federal Reserve left interest rates steady on Wednesday but dropped earlier language about future tightening, prompting widespread expectations that key U.S. rates may be cut. Still, the Fed said it remained cautious about inflation.

ID:nN21416941 U.S. stocks rallied on Wednesday, with the S&P 500 notching its biggest percentage gain in eight months, after investors viewed a statement from the Federal Reserve as signaling the central bank's next move may be a cut in interest rates.

REUTERS DKS HT1910