US stocks expected to edge higher ahead of more retail earnings and weekly jobless claims data

US stocks are expected to edge higher at the open on Thursday ahead of more corporate earnings, notably from the retail sector, and weekly jobless claims data that will be closely watched as investors fret over likely Federal Reserve rate hikes in the medium term.

Futures for the Dow Jones Industrials Average were around 0.2% higher, while those for the broader S&P 500 index added 0.3%, and contracts for the tech-laden Nasdaq-100 futures climbed 0.5%.

The latest weekly US jobless claims data is due at 8.30am ET, with economists expecting a decline as the labor market remains tight. 

Stocks have wavered this week as earnings have rolled in and amid concerns over rising inflation, although the major indexes are still hovering close to their record highs.

On the corporate front Thursday, retailers Macy’s and Kohl’stogether with Chinese e-commerce giants Alibaba and JD.com are scheduled to release earnings ahead of the opening bell in New York.

Technology firm Nvidia rose in out-of-hours trading after posting record quarterly revenue after markets closed. But Cisco Systems (NASDAQ:CSCO) fell after the networking company gave forward earnings guidance that was below Wall Street’s estimates and said it was affected by the semiconductor shortage.

On commodity markets, oil prices fell for a second day after reports that US President Biden and Chinese premier Xi Jinping have discussed jointly releasing strategic reserves to increase supply and lower prices. Brent crude fell below $80  barrel for the first time since October 1. 

Joshua Mahony, senior market analyst at IG, a global leader in online trading commented: “Crude oil has suffered sharp losses over the past 24 hours, with Biden’s calls for a release of strategic reserves overshadowing the decline in US stockpiles announced yesterday. While Biden has had little success in attempting to force OPEC members into raising production to drive down energy prices, his latest ploy to push for a multilateral release of strategic reserves appears to have found support in China.

“A simultaneous release of stocks from both the US and China certainly brings some short-term relief given today’s declines, but there remains plenty of questions over whether the lack of new investment will ultimately lead to a long-standing supply deficit that pushes up energy prices for years to come.”

Story by ProactiveInvestors