US open: Markets edge higher as ECB stimulus offsets weak data

US stock markets rose on Thursday despite some weaker-than-expected domestic economic data, as investors focused on the European Central Bank (ECB) significantly upgraded GDP growth forecasts and details of its stimulus programme.

By 10:26 in New York, the Dow Jones Industrial Average was up 0.3%, the Nasdaq gained 0.4% while the S&P 500 was 0.2% higher.

A bullish ECB revealed that its €1.1trn quantitative easing programme would begin on 9 March and carry through at €60bn a month through September 2016 and thereafter if needed.

The central bank raised GDP growth forecasts for 2015 by 0.5 percentage points (ppt) to 1.5%, for 2016 by 0.3 ppt to 1.8% and released a first forecast of 2.1% for 2017.

Policymakers also raised emergency liquidity assistance for Greece by €500m and removed the waiver on purchases of the nation's debt.

In economic data, factory orders unexpectedly declined 0.2% in January after a revised 3.5% drop in December; the consensus estimate was for 0.2% growth. Non-farm productivity in the fourth quarter was revised to show a 2.2% fall.

Meanwhile, initial US jobless claims rose 7,000 in the week ended 28 February to 320,000, a level not seen since May 2014. Analysts had been anticipating a fall to 295,000 from 313,000 the week before.

"This news hampered the gains the US markets had made on the back of the ECB conference, and suggest a worrying jobs trend before the all-important non-farm figures tomorrow," said Connor Campbell from Spreadex.

Nevertheless, economists broadly expect a continued improvement in the labour market in February, with government figures due Friday predicted to show that the jobless rate declined to 5.6% from 5.7% in January. Non-farm payrolls are expected to have increased by 235,000 in February, from 257,000 the month before.

In company news, Pharmacyclics surged nearly 11% after AbbVie said it would spend $21bn on the company to boost its cancer drug pipeline.

Others in the pharma sector including Johnson & Johnson, Biogen, Infinity and Sevion were also making decent gains.

Retailer Costco Wholesale rose after net income rose 29% to $598m in the second quarter on sale up 4.3% at $26.87bn.