Stocks are set to open modestly higher after the latest weekly jobless claims fell more than expected and Bank of America (BAC) said it was repaying TARP funds. Thirty minutes before the start of trading in New York, index futures hint at modest gains for both the Dow Jones Industrial Average and the NASDAQ.

BofA shares are trading up 1.5 percent after the bank announced late Tuesday that it will repay $45 billion in government bailout money, suggesting its financials are improving amid better economic conditions.

The latest weekly jobless claims showed some improvement as well. According to the Labor Department, filings for benefits fell by 5,000 to 457,000 last week. Economists were expecting an increase to 480,000.

Focus turns to the ISM Services Index at 10:00 a.m. eastern time. The gauge of economic activity outside of the manufacturing sector is expected to increase to 51.5 in November, up from 50.6 the month before.

Bonds are holding losses on the better claims data and ahead of key monthly jobs numbers Friday. The benchmark ten-year Treasury is off 17/32nd and now yields 3.37 percent.

The dollar added .71 to 88.13 against the yen. The euro gained .0047 to 1.5092 against the buck.

Trading is quiet in the commodities markets. Crude oil edged up .22 to 76.82 and gold added $2 to $1215 an ounce.

Among the stocks to watch, GE is in focus after the company ironed out a long awaited deal with Comcast (CMCSK). GE will receive $8 billion. In exchange, Comcast will get a 51 percent stake in NBC Universal. CMCSK also announced a 40 percent dividend increase.

Homebuilder Toll Brothers (TOL) is down 3.6 percent after reporting a fourth quarter loss on a 30 percent drop in revenues. The retailers are reporting same store sales for November. Abercrombie (ANF), Target (TGT), and Costco (COST) are trading lower on the news. Aeropostale (AEO) and Collective Brands (PSS), which reported earnings, are trading higher.