By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks wobbled in early trade on
Thursday, heading higher as investors weighed strong economic data
from China and Japan against a bigger-than-expected jump in weekly
jobless claims and earnings from retailers.
Investors await reports on the health of manufacturing and
housing sectors. Data on existing-home sales, scheduled for 10 a.m.
Eastern time, might shed some light on whether the recent
leveling-off in sales was due to higher mortgage rates.
The S&P 500 (SPX) was 3 points, or 0.2%, higher at 1,891.54.
The Dow Jones Industrial Average (DJI) gained 19 points, or 0.1%,
to 16,551.30. The Nasdaq Composite (RIXF) added 13 points, or 0.3%,
to 4,144.25.
Follow MarketWatch's live blog of today's stock-market
action.
Ahead of the market open, stock futures got a lift from strong
manufacturing data out of China and Japan, however, gains quickly
dissipated. Data on unemployment benefits weighed on sentiment. New
applications for unemployment benefits rose sharply in mid-May,
reversing a big drop earlier in the month that put initial claims
at a seven-year low. The number of people who applied for new
benefits climbed by 28,000 to 326,000 in the week ended May 17, the
Labor Department said Thursday. Economists surveyed by MarketWatch
expected initial claims to total 315,000 on a seasonally adjusted
basis.
Another key set of data for investors will be existing-home
sales at 10 a.m. Eastern time, where economists see sales inching
up to an annual rate of 4.66 million in April, from 4.59 million in
March. Economists fear there could be more to the recent
leveling-off in home sales, so far blamed on higher mortgage
rates.
Other reports include the Markit national manufacturing survey,
due at 9:45 a.m. Eastern time, followed by leading indicators at 10
a.m. Eastern.
In earnings news, Best Buy (BBY) shares jumped 8% after the
retailer's adjusted first-quarter profit beat expectations.
Dollar Tree (DLTR) posted first-quarter results that were in
line with expectations. Shares rallied 8.4%.
After the market closes, Hewlett-Packard Co. (HPQ) and Gap Inc.
(GPS) are among companies set to report. Best Buy, Dollar Tree, H-P
are stocks to watch
Sears Holdings (SHLD) said it would close 80 stores this year as
its fiscal first-quarter loss widened amid falling revenue and weak
same-store sales. Shares fell 3.8%.
Shares of Williams Sonoma-Inc. (WSM) rose 6.9% after the
kitchenware retailer late Tuesday reported a rise in its
first-quarter profit, beating forecasts.
European stocks got a boost from preliminary euro-zone PMI data
that confirmed business activity in the region continued to pick up
in May. In Asia, the Nikkei 225 index was the best-performing
market, up 2.1% after Markit released its first-ever preliminary
version of Japan's manufacturing index, which rose to a two-month
high of 49.9 in May.
Gold for June delivery (GCM4) added $13 to $1,301.60 an ounce,
while crude for July delivery (CLN4) eased and the dollar lost
ground against the euro (EURUSD) after that upbeat PMI data.
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