* Second-quarter final GDP data on tap
* New York ISM, Chicago PMI due
* Investors eye Bernanke testimony
* Futures down: Dow 4 pts, S&P 2.6 pts, Nasdaq 3.75 pts
* For up-to-the-minute market news see []
NEW YORK, Sept 30 (Reuters) - U.S. stocks index futures
dipped on Thursday ahead of key data on business activity and
jobs, while investors looked ahead to testimony from Fed
Chairman Ben Bernanke on implementing financial regulation.
The September Institute for Supply Management-New York
report and September's Chicago PMI data are seen as early
indicators ahead of national surveys on Friday and later next
week, while weekly data on claims for jobless benefits will
provide an insight into the state of the labor market.
Bernanke will testify before a Senate Banking Committee
hearing on implementing the recently passed financial
regulation act and investors will be on the look out for any
reaction in financial shares.
"We're going to be watching the banks pretty closely," said
David Lutz, managing director of trading, Stifel Nicolaus
Capital Markets in Baltimore. Lutz said that uncertainty over
the regulation may have been weighing on financial stocks in
recent days.
Investors will also monitor the final estimate on U.S.
second-quarter GDP. Economists in a Reuters survey forecast a
1.6 percent annualized pace of growth, a repeat of the second
estimate.
S&P 500 futures <SPc1> fell 2.6 points and were below 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 <DJc1> lost 4
points, and Nasdaq 100 futures <NDc1> fell 3.75 points.
The S&P 500 has gained over 9 percent so far this month,
helped by signs of stabilization in the economy and hopes the
Federal Reserve will take extra steps to spur the recovery.
Performance chasing at the end of the quarter also could
help lift indexes as fund managers attempt to dress up their
portfolios by adding to wining stocks and selling losers.
In corporate news, Shares of American International Group
Inc <AIG.N> rose 3.9 percent to $38.90 in premarket trading
after the company and the U.S. government agreed on a plan that
would see the insurer repay taxpayers fully for bailing it out
at the height of the financial crisis.
Shares of Prudential Financial Inc <PRU.N> fell 3.4 percent
to $54.58 after the company agreed to buy two Japanese life
insurance units from AIG for $4.2 billion.
Car rental company Avis Budget Group Inc <CAR.N> said on
late Wednesday it would be willing to include a break-up fee in
its offer for Dollar Thrifty Automotive Group <DTG.N> if rival
Hertz Global Holdings <HTZ.N> walks away from its own takeover
bid for Dollar Thrifty. []
Wall Street took a breather from a month-long rally on
Wednesday, with investors bracing for higher volatility going
forward as the best quarter in a year nears its end.
The ISM-New York report, the weekly jobless claims data, as
well as the second quarter GDP number are due at 8.30 a.m.
(1230 GMT)
Chicago PMI data is due at 9.45 a.m. (1345 GMT), while
Bernanke testimony is slated to start 10 a.m. (1400 GMT)
(Reporting by Edward Krudy; Editing by Theodore d'Afflisio)
