The major U.S. index futures are pointing to a higher opening on Thursday, with the slight resurgence in risk appetite likely to support sentiment. Crude oil futures are extending their gains and the euro is also firming up - all pointing to the return of risk appetite after equities went into a tailspin in recent sessions before they rebounded moderately yesterday.
The release of a fairly encouraging jobless claims report, showing a decline in the number of individuals filing for unemployment benefits from elevated levels may also alleviate anxieties. That said, fundamental concerns still remain, restraining any meaningful move to the upside. If key resistance levels around the averages' 50-day moving averages are broken to the upside, then further buying may materialize.
U.S. stocks rebounded from a 4-session slide on Wednesday even though the economic news continued to be disconcerting. The major averages opened lower, weighed down by the disappointing durable goods orders and new home sales data, and languished in negative territory for the better part of the session. However, bargain hunting that emerged in the afternoon lifted the major averages, which popped into positive territory in late afternoon trading and closed moderately higher.
The Dow Industrials ended up 19.61 points or 0.20% at 10,060 and the S&P 500 Index closed 3.46 points or 0.33% higher at 1,055, while the Nasdaq Composite added 17.78 points or 0.84% to end at 2,142.
Twenty-one of the thirty Dow components closed higher, with Home Depot (HD) leading the gains with a near 2% rally. Kraft Foods (KFT) and Pfizer (PFE) also advanced strongly.
Among sector indexes, the NYSE Arca Biotechnology Index rose 1.91%, the Philadelphia Housing Sector surged up 2.67%, the S&P Retail Index rose 1.37% and the NYSE Arca Gold Bugs Index rallied 3%, while the Philadelphia Semiconductor Index and the NYSE Arca Internet Index both gained about 1%. However, the NYSE Arca Airline Index fell 1.20%.
On the economic front, the Commerce Department reported that durable goods orders rose an anemic 0.3% month-over-month in July, notably slower than the 3% increase expected by economists. Excluding transportation orders, orders declined 3.8%, while non-defense capital goods orders-an indicator of capital spending declined 8% in July.
Machinery orders slumped 15%, electrical equipment orders slipped 5.9% and computer/electronics orders fell 2.4%. On the other hand, orders for vehicles/parts were 5.3% higher.
Meanwhile, new home sales came in at an annualized rate of 276,000 in July compared to expectations of 334,000 and the 315,000 reported for June. Inventories measured in terms of months of supply rose to 9.1 from 8, while the median price of a new home declined 6% month-over-month.
Currency, Commodity Markets
Crude oil futures are rising $0.77 to $73.29 a barrel after advancing $0.89 to $72.52 a barrel on Wednesday's session. The previous session's rebound following 5 sessions of losses came despite the release of a weekly inventory report showing that crude oil stockpiles rose by 4.1 million barrels to 358.3 million barrels in the week ended August 20th. Inventories remained above the upper limit of the average range.
Gasoline inventories climbed by 2.3 million barrels, remaining above the upper limit of the average range. Distillate stockpiles also increased, rising by 1.8 million barrels and remaining above the upper boundary of the average range. Refinery capacity utilization averaged 87.7% over the four weeks ended August 20th compared to 90% in the previous week.
An ounce of gold is currently fetching $1,242.90, up $1.60. In the previous session, the precious metal jumped $7.90 to $1,241.30 an ounce.
On the currency front, the U.S. dollar is trading at 84.636 yen compared to the 84.575 yen it fetched at the close of New York trading on Wednesday. The dollar is currently valued at $1.2669 compared to yesterday's $1.2659.
Asia
The major Asian markets closed Wednesday's session mostly higher, with the Japanese and Australian markets recovering from a four-session slide, while the Hong Kong, the Singaporean, the South Korean and Taiwanese markets closing lower.
Japan's Nikkei 225 average opened higher, but retreated into negative territory in early trading. However, the index recovered immediately thereafter and moved sideways for the rest of the session to close moderately higher. The yen's retreat helped beaten down export stocks.
Dentsu, Hitachi Construction, J Front Retailing, Japan Steel Work, Mitsui Engineering & Shipping, Mizuho Trust & Banking, Nitto Boseki Co., Oki Electric Industries, Resona Holdings, Softbank and Nissan Chemical Industries were among the biggest gainers in the session.
Australia's All Ordinaries opened higher and saw some volatility in early trading. Thereafter, the index advanced steadily to close up 32.80 points or 0.75% at 4,389. Energy and consumer staple stocks showed notable buying interest, while defensive IT and utilities retreated.
Hong Kong's Hang Seng Index traded mostly below the unchanged line before closing down 22.92 points or 0.11% at 20,612. Most other stocks, barring China-related stocks, advanced in the session.
Europe
The major European averages are trading higher on Thursday, with the French CAC 40 Index and the German DAX Index are advancing 0.97% and 1.06%, respectively, while the German Index is rising 0.93%.
A monthly survey from GfK Group showed that its forward-looking consumer confidence index for Germany rose to 4.1 points in September from a revised 4 points in August. Economists had expected the index to show a reading of 4 points. The substantial rise in German gross domestic product in the second quarter, falling unemployment and the decrease in the use of reduced working hours were cited as the sentiment boosting factors.
U.S. Economic Reports
Following the release of several disappointing employment reports, the Labor Department released a report showing that first-time claims for unemployment benefits fell by more than expected in the week ended August 21st.
The report showed that initial jobless claims 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
Stocks in Focus
Earnings
Semtech (SMTC) reported that its second quarter non-GAAP earnings rose to 42 cents per share from 18 cents per share last year. Net revenues rose 70.7% to $113.2 million. Analysts estimated earnings of 38 cents per share on revenues of $110.60 million. For the third quarter, the company expects non-GAAP earnings of 45-47 cents per share on net sales growth of 6%-10% quarter-over-quarter. The consensus estimates call for 41 cents per share on revenues of $115.93 million, representing 2.5% sequential growth.
JDSU (JDSU) reported fourth quarter non-GAAP earnings of 15 cents per share compared to a loss of 1 cent per share last year. Net revenues on a non-GAAP basis rose to $398.1 million from the year-ago's $274.1 million. Analysts estimated earnings of 14 cents per share on revenues of $398.52 million. The company expects first quarter non-GAAP revenues of $410 million to $425 million, while analysts estimate revenues of $415.44 million.
Jo-Ann Stores (JAS) reported a profit of 20 cents per share for its second quarter compared to a loss of 13 cents per share last year. The consensus estimates called for earnings of 2 cents per share on revenues of $437.08 million. The company's net sales rose 4.7% to $439.3 million. The company raised its 2011 earnings estimate to $3.20-$3.35 per share from $2.95-$3.10 per share, while analysts estimate earnings of $3.23 per share.
Guess? Inc. (GES) could also move in reaction to its announcement that its second quarter earnings climbed to 72 cents per share from 64 cents per share last year, exceeding the consensus estimate of 68 cents per share. Net revenues rose 10.5% to $577.1 million, also exceeding the $576.38 million consensus estimate. For the third quarter, the company expects net revenues of $565 million to $580 million and earnings of 55-58 cents per share. The Street estimates earnings of 57 cents per share on revenues of $566.38 million. The company now expects full year earnings of $2.80-$2.85 per share on revenues of $2.35 billion to $2.40 billion. The full year revenue guidance surrounds the consensus estimate of $2.39 billion, while the earnings guidance trails the mean analysts' estimate of $2.92 per share.
Other Corporate News
Emulex (ELX) could be in focus after it reiterated its guidance for the first quarter, expecting a loss of 8-11 cents per share on a non-GAAP basis and revenues of $100 million to $104 million. Analysts estimate earnings of 11 cents per share on revenues of $112.25 million. The company also said it has completed the acquisition of privately held ServerEngines, a fabless semiconductor company based in California for $78 million in cash, excluding $25 million of debt plus interest owed to Emulex and 8 million shares of Emulex stock.
Bob Evans Farms (BOBE) may trade higher after it announced an 11%increase in its quarterly cash dividend to 20 cents per share from 18 cents per share.
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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.