North American stock index futures rose on Thursday on hopes that Congress might be close to a deal on a $700 billion bailout to rescue the financial sector, which helped temper gloomy economic news and a profit warning from General Electric Co.

A report showing that the number of people filing for jobless benefits unexpectedly surged in the U.S. in the recent week, suggesting economic weakness. In addition, other government data released on Thursday showed a sharper-than-expected slide in August in new orders for durable goods.

Orders for big-ticket manufactured goods plunged by 4.5% last month, far worse than the 1.6% decline that economists had expected.

As for GE, the company lowered its earnings guidance for the third quarter and the full year on Thursday and suspended its stock buyback plan, saying “unprecedented” weakness and volatility in the financial services markets has weighed on its GE Capital division.

On the positive side, confidence that the US$700-billion bailout plan increased after U.S. President George W. Bush made an appeal on national television on Wednesday night, calling for the plan to be adopted. The consequence if it is not would be a “long, painful recession,” he said.

Overseas, markets were mixed due to the uncertainty of whether the bailout would go ahead. Asian markets fell while European markets spiked.

Tokyo closed down 0.90% Thursday, Hong Kong slid 0.20%, Sydney shed 1.0% and Taipei lost 1.17%. Seoul managed a gain of 0.38% and Bangkok won 0.11%.
In Europe, Paris was up 0.88%, Frankfurt jumped 0.83% and London was flat at midday Thursday.

On Wednesday, the S&P/TSX composite index closed down 19.27, or 0.15%, to 12,513.36 while the S&P/TSX Venture Exchange moved up 12.04, or 0.78%, to 1,550.64.

The Canadian dollar ended the day at US96.46¢, down a modest .04¢.

In New York, the Dow Jones industrial average fell 29 points, or 0.27%, to 10,825.17, the Nasdaq composite index gained 2.35, or 0.11%, to 2,155.68, and the S&P 500 fell 2.35, or 0.20%, to 1,185.87.