The major U.S. index futures are pointing to a slightly higher opening on Thursday, with a positive jobless claims data did not providing adequate thrust to push the futures from their indecisive state. Across the Atlantic, the European Central Bank did not announce any stimulatory props. Earnings news flow could largely be described as mixed. Against this backdrop, the markets may stay tuned to the Institute for Supply Management's service sector survey due to be released after the markets open.
U.S. stocks closed Wednesday's session on a mixed note after the release of a report showing a smaller than expected addition to private sector payrolls. The major averages opened lower and languished below the unchanged line in early trading. While the Dow Industrials and the S&P 500 Index continued to trade in the red, the Nasdaq Composite recovered by the afternoon and stayed mostly above the unchanged line for the rest of the session.
The Dow Industrials fell 10.75 points or 0.08 percent before closing at 13,269 and the S&P 500 Index retreated 3.51 points or 0.25 percent before ending at 1,402, while the Nasdaq Composite closed up 9.41 points or 0.31 percent at 3,060.
Sixteen of the thirty Dow components closed lower, with Alcoa (AA) (down 2.41 percent), Bank of America (BAC) (up 1.81 percent), JP Morgan Chase (JPM) (down 1.35 percent) and Chevron (CVX) (up 1.15 percent) declining the most.
Energy, gold and financial stocks were among the worst performing sectors. Meanwhile, transportation, retail, housing and biotechnology stocks saw some buying interest.
On the economic front, ADP reported that the private sector added 119,000 jobs in April, well below the 201,000 jobs expected by economists. This represented the slowest job growth since September 2011. The goods producing sector lost 4,000 jobs, while the service providing sector added 123,000 jobs.
Currency, Commodity Markets
Crude oil futures are slipping $0.19 to $105.03 a barrel after declining $0.94 to $105.22 a barrel on Thursday. The previous session's drop came amid the release of the weekly inventory report, which showed that crude oil inventories rose by 2.8 million barrels in the week ended April 27th. Inventories remained in the upper limit of the average range.
Distillate inventories fell by 1.9 million barrels and were in the middle of the average range for this time of the year. Gasoline inventories declined by 2 million barrels, remaining in the middle of the average range. Refinery capacity utilization averaged 84.8 percent over the four weeks ended April 27th compared to 84.7 percent over the previous four weeks.
Gold futures are currently receding $15.40 to $1,638.60 an ounce. In the previous session, the precious metal fell $8.40 to $1,654.
Among currencies, the U.S. dollar is trading at 80.46 yen compared to the 80.14 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.3157 compared to yesterday's $1.3158.
Asia
The major Asian markets closed mostly lower, as the lackluster lead from Wall Street and apprehension ahead of European debt auctions impacted sentiment. The Japanese market remained closed on account of a public holiday.
Australia's All Ordinaries fell 10.30 points or 0.23 percent before closing at 4,495 and Hong Kong's Hang Seng Index ended at 21,250, down 59.55 points or 0.28 percent.
Europe
The major European markets are advancing moderately amid the positive U.S. jobless claims data and the European Central Bank rate decision. The central bank opted to keep rates unchanged and also refrained from announcing any fresh bond buying program.
The results of a Spanish debt auction revealed a strong reception to the offering, although borrowing costs were higher than in previous auctions. The nation was able to sell debt at the high end of its target, while the yield for the 5 year auction rose close to 5 percent.
U.S. Economic Reports
New claims for unemployment in the U.S. fell by a larger number than predicted in the final full week of April, according to figures released by the Labor Department. For the week ending April 28 initial unemployment claims came in at a seasonally adjusted level of 365,000, a drop of 27,000 from the previous week's revised figure of 392,000.
And while the previous week's level of new claims was revised up from the 388,000 initially reported, the drop for the week of April 28 was larger than predicted by most economists who had expected to see new claims come in at 378,000. The total number of people claiming unemployment benefits, a figure known as continuing claims, dropped 53,000 to a seasonally adjusted level of 3.276 million for the week ending April 21. U.S worker productivity decreased in the first quarter of 2012, as productivity increases were outpaced by the number of hours worked, according to a separate report released by the Labor Department.
Department statistics showed a 2.7 percent increase in output at non-farm businesses coupled with a 3.2 percent increase in hours worked, resulting in a 0.5 percent decline in labor productivity. Most economists had expected a decline in productivity, though the consensus predicted a slightly smaller 0.4 percent drop.
The Institute for Supply Management is scheduled to release the results of its non-manufacturing survey at 10 am ET. The non-manufacturing index is expected to show a reading of 56 for April.
The non-manufacturing index unexpectedly fell to 56 in March from 57.3 in February. The business activity index fell 3.7 points to 58.9 and the new orders index slid 2.4 points to 58.8. The order backlogs index slipped into contraction territory, declining to 49.5 from 53. Meanwhile, the employment index rose 1 point to 56.7.
Federal Reserve Bank Presidents Charles Plosser of Philadelphia Fed, Dennis Lockhart of the Atlanta Fed and John Williams of San Francisco Fed are among the presenters at the University of California at Santa Barbara Economic Forecast Project 2012. The presentation is scheduled for 11 am ET.
Stocks in Focus
General Motors' (GM) first quarter profit plunged from the previous year, but was above what analysts had estimated. The company also raised its forecast for U.S. light vehicle sales for full-year 2012.
MGM Resorts (MGM) reported a first quarter loss that widened from the previous year. Meanwhile, consolidated net revenue increased 51 percent.
Kensey Nash Corp. (KNSY) agreed to be acquired by Royal DSM for $38.50 in cash per share.
Costco Wholesale (COST) said its April comparable store sales rose 4 percent, while net sales were up 7 percent to $7.25 billion. Excluding the inflation in gasoline prices, comparable store sales for April rose 5 percent.
Carlyle Group said it has priced the IPO of 30.5 million shares of its common units at $22 per unit. The unit will start trading on the Nasdaq under the symbol of CG on May 3rd, 2012.
NCI Building (NCS) announced a deal to buy Metl-Span from a BlueScope unit for $145 million in cash.
Manpower (MAN) said its board approved an increase in its semi-annual dividend to 43 cents per share from 40 cents per share.
Atmel (ATML) announced that its board has authorized an additional $200 million allocation of funds to its existing $500 million common stock repurchase program.
DreamWorks (DWA) reported better than expected first quarter results.
RealNetworks (RNWK) reported a wider loss for its first quarter as sales fell 23 percent. Allstate's (ALL) first quarter operating earnings beat estimates, while Prudential Financial (PRU) reported first quarter operating earnings that came in below estimates. Symantec (SYMC) reported fourth quarter earnings and revenues in line with estimates, while its first quarter guidance trailed estimates.
ValueClick's (VCLK) first quarter earnings exceeded estimates, while its revenues were below estimates. The company's second quarter guidance was also below expectations.
Green Mountain Coffee (GMCR) reported second quarter adjusted earnings that came in line with estimates, while its revenues as well third quarter and full year guidance were below expectations.
AIG (AIG), bebe Stores (BEBE), Canadian Natural Resources (CNQ), Con Edison (ED), Digital River (DRIV), Fluor (FLR), International Rectifier (IRF), Kraft Foods (KFT), LinkedIn (LNKD), Manitowoc (MTW), Qlogic (QLGC) and Wynn Resorts (WYNN) are among the companies due to release their quarterly results after the markets close.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.