The major U.S. index futures are pointing to a higher opening on Thursday. Sentiment seems to be largely unaffected by a report released earlier in the day, which showed that jobless claims increased unexpectedly. That said, more economic data is on the deck and these data could sway the markets. Deal news and the announcement from General Motors about it proposed initial public offering could provide some encouragement to traders.
U.S. stocks opened Wednesday's session lower amid a lack of any major catalysts and mostly remained below the unchanged line until the afternoon. Thereafter, the major averages staged a recovery and traded with moderate gains for much of the remainder of the session before giving back some ground and closing modestly higher.
The Dow Industrials ended up 9.69 points or 0.09% at 10,416 and the Nasdaq Composite closed 6.26 points or 0.28% higher at 2,216, while the S&P 500 Index added 1.62 points or 0.15% to close at 1,094.
Nineteen of the thirty Dow components closed the session higher, with Cisco Systems (CSCO), Home Depot (HD), Hewlett-Packard (HPQ), JP Morgan Chase (JPM) and AT&T (T) posting notable gains. However, Exxon Mobil (XOM), Pfizer (PFE) and Chevron (CVX) lost about 1% each.
Among the sector indexes, the NYSE Arca Gold Bugs Index gained 1.71%, the Philadelphia Semiconductor Index added 1.07%, the NYSE Arca Disk Drive Index advanced 1.44%, the NYSE Arca Computer Hardware Index climbed 1.17%, the S&P Retail Index moved up 1.02% and the Philadelphia Housing Sector Index rose 1.36%. On the other hand, the Philadelphia Oil Service Index and the NYSE Arca Oil Index fell 0.85% and 0.94%, respectively.
Currency, Commodity Markets
Crude oil futures are moving up $0.24 to $75.66 a barrel after receding $0.35 to $75.42 a barrel on Wednesday. The previous session's modest decline came amid the release of the weekly oil inventory report, which showed that crude oil inventories fell by 0.8 million barrels to 354.2 million barrels in the week ended August 13th. Notwithstanding the decline, crude oil stockpiles were above the upper limit of the average range for this time of the year.
Gasoline inventories remained almost unchanged and remained above the upper limit of the average range. Meanwhile, distillate stockpiles rose by 1.1 million barrels and were above the upper boundary of the average range. Refinery capacity utilization averaged 90% over the four weeks ended August 13th compared to 88.1% in the previous week.
Gold futures are trading up $1.60 at $1,233 an ounce. In the previous session, the precious metal rose $3.10 to $1,1231.40 an ounce.
Among currencies, the U.S. dollar is trading at 85.665 yen compared to the 85.4568 yen it fetched at the close of New York trading on Wednesday. The greenback is currently valued at $1.281 compared to yesterday's $1.2852.
Asia
Encouraged by Wall Street sustaining its gains overnight, the major Asian markets advanced on Thursday. The Japanese market led the gains from the region.
Japan's Nikkei 225 average opened almost unchanged and showed a notable upward move in early trading before steadily rising amid some volatility to close up 122.14 points or 1.32% at 9,363. A weaker yen offered support to the markets. Most sectors, barring defensive stocks, found buying interest.
In economic news, the Ministry of Trade, Economy and Industry said Japan's all industry index unexpectedly rose by 0.1% month-over-month in June, with the pace of growth matching the previous month's. Economists were expecting a 0.3% drop.
Australia's All Ordinaries opened remained mostly below the unchanged line before moving decisively into positive territory to close up 5.70 points or 0.13% at 4,510. Energy stocks advanced strongly, helping to offset the losses among financial, healthcare and realty stocks.
Hong Kong's Hang Seng Index opened higher and moved roughly sideways for about two hours before climbing sharply in early afternoon trading. While the index pared back its gains in the afternoon, it still closed up 49.73 points or 0.24% at 21,072. Property, financial and China-related stocks saw buying interest, while utility and index heavyweights HSBC Holdings and China Mobile declined.
Europe
The major European markets are showing volatility on Thursday and are currently trading lower. The French CAC 40 Index and the German DAX Index are receding 0.33% and 0.31%, respectively, while the U.K.'s FTSE 100 Index is declining 0.41%.
In economic news, a report released by the U.K. Office for National Statistics showed that the U.K.'s retail sales rose 1.1% month-over-month in July following the 0.7% increase in June. Economists had expected a more modest 0.3% increase. On a year-over-year basis, retail sales were up 1.3%, faster than the 1.1% increase in June.
U.S. Economic NewsFirst time claims for unemployment benefits showed another unexpected increase in the week ended August 14th, according to a report released by the Labor Department, with the data likely to add to recent concerns about the outlook for the labor market.
The report showed that initial jobless claims rose to 500,000 from the previous week's revised figure of 488,000. Economists had been expecting jobless claims to slip to 475,000 from the 484,000 originally reported for the previous week. The Conference Board is scheduled to release a report on its U.S. leading index for July at 10 AM ET. The consensus estimate calls for a 0.2% increase in the leading indicators index for the month.
In June, the leading economic indicators index fell 0.2% month-over-month following a 0.5% increase in May. Economists had estimated a 0.4% drop. Average workweek and the pace of supplier deliveries served as the biggest drags along with the equity market weakness and a small increase in weekly jobless claims.
The results of the Philadelphia Federal Reserve's manufacturing survey are due out at 10 AM ET. Economists expect the diffusion index of current activity to show a reading of 7.5 for August.
In July, the manufacturing index fell to 5.1 from 8 in June, while economists had expected an increase by the index to 10. The new orders index fell to -4.3 from the month-ago's 9 and the shipments index declined about 10 points to 4. On the other hand, the employment index climbed back into the positive zone, rising to 4 from -1.5 in June. The future business conditions index was also weak, declining to 25 in July from 40.2 in June.
St Louis Federal Reserve Bank President James Bullard will speak about the economic outlook and monetary policy in Rogers, Arkansas, at 11.30 AM ET. At 1:30 PM ET, Chicago Federal Reserve Bank President Charles Evans is due to hold a press lunch.
Stocks in Focus
Earnings
Netease.com (NTES) reported second quarter earnings of 55 cents per share compared to 53 cents per share last year. Revenues rose about 49% to $198.6 million. Analysts estimated earnings of 58 cents per share on revenues of $184.94 million.
Limited Brands (LTD) said its second quarter adjusted earnings rose to 36 cents per share from 19 cents per share last year. Net sales rose to $2.24 billion from $2.07 billion. The results were ahead of the consensus estimates. The company also raised its August comparable store sales growth guidance to the mid to high single digits from its earlier estimate for a low single digit increase. The company also lifted its 2010 earnings per share guidance to $1.68-$1.83 from $1.60-$1.80. For the third quarter, the company estimates earnings of 3-8 cents per share. Analysts estimate earnings of 6 cents per share for the third quarter and $1.81 per share for the year.
Synopsys (SNPS) reported that its third quarter non-GAAP earnings fell to 39 cents per share from 47 cents per share last year, although its earnings topped the 38 cents per share consensus estimate. Sales slipped to $336.9 million from $345.2 million last year, exceeding the mean analysts' estimate of $335.48 million. The company expects fourth quarter non-GAAP earnings of 37-39 cents per share on revenues of $349 million to $357 million. Analysts estimate earnings of 38 cents per share on revenues of $335.48 million. For the full year, the company expects non-GAAP earnings of $1.58-$1.60 per share on revenues of $1.354 billion to $1.362 billion. The consensus estimates call for earnings of $1.58 per share on revenues of $1.35 billion.
Brocade (BRCD) reported third quarter non-GAAP earnings of 13 cents per share, up 8% year-over-year. Revenues rose 2% year-over-year to $504 million. The consensus estimates called for earnings of 13 cents per share on revenues of $508.41 million.
Applied Materials (AMAT) reported a third quarter profit of 17 cents per share compared to a loss of 2 cents per share in the year-ago period. Net sales rose to $2.52 billion from the year-ago's $1.13 billion. Analysts estimated earnings of 25 cents per share on revenues of $2.38 billion. For the fourth quarter, the company expects revenues to remain flat to rise 5% sequentially, while non-GAAP earnings are estimated at 28-32 cents per share. The consensus estimates call for earnings of 26 cents per share on revenues of $2.43 billion.
NetApp (NTAP) reported first quarter non-GAAP earnings of 49 cents per share, higher than 22 cents per share last year. Revenues climbed to $1.14 billion from the year-ago's $838 million. For the fourth quarter of fiscal year 2011, the company expects non-GAAP earnings of 47-50 cents per share on revenues of $1.16 billion to $1.21 billion. The consensus estimates call for earnings of 47 cents per share on revenues of $1.17 billion.
Hot Topic (HOTT) reported a loss of 14 cents per share for its second quarter compared to a loss of 7 cents per share last year. The results from both quarters included a charge of 2 cents per share. Sales fell 4.9% to $150 million. Analysts estimated a loss of 13 cents per share on revenues of $150.36 million.
Staples (SPLS) reported that its second quarter adjusted earnings rose 25% to 20 cents per share. Sales were almost flat at $5.5 billion. The consensus estimates called for earnings of 20 cents per share on revenues of $5.64 billion. On an adjusted basis, the company expects earnings of 39-41 cents per share for the third quarter and $1.25-$1.29 per share for the full year. Analysts estimate earnings of 43 cents per share for the third quarter and $1.33 per share for the full year.
Other Corporate News
RadioShack (RSH) is expected to see some activity after it announced that its board increased its share repurchase authorization to $500 million from the current $290 million.
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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.