With traders weighing some disappointing economic data against upbeat earnings news from tech giant Cisco (CSCO), stocks may show a lack of direction in early trading on Thursday. The major index futures are currently pointing to a mixed open for the markets.
Cisco may help to lead technology stocks higher, with the networking giant jumping 13 percent in pre-market trading after releasing its third quarter results after the close of trading on Wednesday.
While Cisco reported third quarter results that exceeded analyst estimates, further buying interest was generated by Chairman and CEO John Chambers' remarks indicating that the company is starting to see some encouraging signs in the U.S. and other parts of the world.
However, the positive sentiment was partly offset by a batch of disappointing U.S. economic data, including a report from the Labor Department showing a bigger than expected increase in initial jobless claims in the week ended May 11th.
The report said initial jobless claims rose to 360,000, an increase of 32,000 from the previous week's revised figure of 328,000. Economists had expected claims to climb to 330,000 from the 323,000 originally reported for the previous week.
A separate report from the Commerce Department showed that housing starts tumbled 16.5 percent to a seasonally adjusted annual rate of 853,000 in April from the revised March estimate of 1.021 million.
Economists had expected housing starts to drop to an annual rate of 969,000 from the 1.036 million originally reported for the previous month.
On the other hand, the report also showed that building permits, an indicator of future housing demand, jumped 14.3 percent to an annual rate of 1.017 million in April from the revised March rate of 890,000.
The Labor Department also released a report showing that consumer prices fell by slightly more than expected in April amid a sharp drop in energy prices.
Disappointing quarterly results from Wal-Mart (WMT) may also weigh on the markets, with the retail giant dipping 2 percent in pre-market trading.
Stocks saw some volatility over the course of the trading day on Wednesday before ending the session mostly higher. The higher close on the day extended the recent upward move by the markets, with the Dow and the S&P 500 once again reaching new record highs.
The major averages moved to the upside going into the close, ending the day in positive territory. The Dow rose 60.44 points or 0.4 percent to 15,275.69, the Nasdaq climbed 9.01 points or 0.3 percent to 3,471.62 and the S&P 500 advanced 8.44 points or 0.5 percent to 1,658.78.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. While Japan's Nikkei 225 Index pulled back by 0.4 percent, Hong Kong's Hang Seng Index edged up by 0.2 percent.
The major European markets have also turned mixed on the day. The U.K.'s FTSE 100 Index has inched up by 0.1 percent, while the French CAC 40 Index is down by 0.4 percent and the German DAX Index is just below the unchanged line.
In commodities trading, crude oil futures are climbing $0.26 to $94.56 after rising $0.09 to $94.30 a barrel on Wednesday. Gold futures, which tumbled $28.30 to $1,396.20 an ounce in the previous session, are sliding $19.90 to $1,376.30 an ounce.
On the currency front, the U.S. dollar is trading at 102.32 yen compared to the 102.25 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.2889 compared to yesterday's $1.2887.
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Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.