Stock futures are pointing to moderate gains Thursday morning, as the markets are digesting a steeper than expected drop in jobless claims. The major index futures are all in positive territory, with the Dow futures up by 40 points.
The Labor Department reported that initial jobless claims in the week ended August 21st fell to 473,000 from the previous week's revised figure of 504,000. Economists had expected jobless claims to show a more modest decrease to 485,000 from the 500,000 originally reported for the previous week.
While the bigger than expected decrease pulled jobless claims down off the nine-month high set in the previous week, claims remain at an elevated level.
The markets may also look to any commentary from central bankers gathering at the yearly Jackson Hole conference over the next few days, with the direction of the economy on the fence.
On the corporate front, Dell (DELL) may be in focus after the computer maker boosted its bid for data storage firm 3PAR (PAR) to $24.30 per share, topping Hewlett-Packard's (HPQ) offer of $24 per share.
Broadband equipment maker JDS Uniphase Corp. (JDSU) reported its first profit in two and a half years. The company reported fourth quarter non-GAAP earnings of $0.15 per share, beating consensus estimates by a penny, while its revenues of $398.52 million were about in line with expectations. The company's first quarter revenue guidance was above estimates.
Craft and fabric retailer Jo-Ann Stores (JAS) reported second quarter results that topped projections while lifting its 2011 earnings estimate above most analysts' outlook.
Meanwhile, international clothing designer Guess? (GES) was 2011 earnings outlook was below consensus estimates, although the company's second quarter results exceeded expectations.
Beer and wine producer Diageo PLC (DEO), whose flagship products include Guinness, Johnnie Walker and Smirnoff vodka, missed full year earnings projections despite seeing a 1.5 percent profit increase and a 2 percent increase in sales.
Stocks ended Wednesday's session up by solid margins, despite daunting figures on new home sales and durable goods orders. The major averages all turned to the upside in the second half of the day amid some bargain hunting following Tuesday's seven-week closing lows.
The Dow gained 20 points to close at 10,060, the Nasdaq advanced by 18 points to 2,142 and the S&P 500 rose by 3 points to 1,055.
Overseas, stock markets in the Asia-Pacific closed mostly higher on Thursday, with Japan's benchmark Nikkei 225 Index advancing by 0.7 percent. However, Hong Kong's Hang Seng Index bucked the uptrend and edged down by 0.1 percent.
The major European markets have shown a notable move to the upside. The U.K.'s FTSE 100 Index and the French CAC 40 Index are both up by 1 percent, while the German DAX Index is up by 0.7 percent.
Among currencies, the U.S. dollar is little changed against the euro, trading at $1.2668, and it is down against the pound at $1.5511. Versus the yen, the dollar is nearly flat at 84.65 yen, lingering near a recent fifteen-year low.
In commodities trading, crude oil futures are up by $1.13 to $73.65 a barrel and gold futures are up by $1.10 at $1,241.00 an ounce.
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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.