WASHINGTON (dpa-AFX) - Following the lackluster performance seen in the previous session, stocks are likely to move to the upside in early trading on Thursday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 84 points.
Early buying interest is likely to be generated in reaction to positive developments on the stimulus front, with lawmakers signaling progress toward an agreement on a new relief package.
Following a meeting with other congressional leaders, Senate Majority Leader Mitch McConnell, R-Ken., said the talks have made 'major headway toward hammering out a targeted pandemic relief package that would be able to pass both chambers with bipartisan majorities.'
Senate Minority Leader Chuck Schumer, D-N.Y., agreed that the two sides are 'close to an agreement' but cautioned that it's 'not a done deal yet.'
Meanwhile, House Speaker Nancy Pelosi's Deputy Chief of Staff Drew Hammill said the Speaker, Schumer and Treasury Secretary Steven Mnuchin spoke Wednesday tonight as part of a series of phone conversations to complete the relief negotiations.
'All three emphasized the urgency to reaching an immediate agreement and will exchange additional paper and resume conversations in the morning,' Hammill said in a post on Twitter.
However, the positive sentiment may be partly offset by a report from the Labor Department showing an unexpected increase in first-time claims for U.S. unemployment benefits in the week ended December 12th.
The report said initial jobless claims rose to 885,000, an increase of 23,000 from the previous week's revised level of 862,000.
The continued increase surprised economist, who had expected jobless claims to drop to 800,000 from the 853,000 originally reported for the previous week.
With the unexpected increase, jobless claims climbed to their highest level since hitting 893,000 in the week ended September 5th.
The data may raise concerns about the outlook for the labor market but could also put further pressure on lawmakers to reach an agreement on a stimulus bill.
A separate report released by the Commerce Department showed new residential construction in the U.S. unexpectedly increased in the month of November.
After ending Tuesday's trading sharply higher, stocks showed a lack of direction over the course of the trading session on Wednesday. Despite the choppy trading, the tech-heavy Nasdaq reached a new record closing high.
The major averages eventually ended the session mixed for the third time in four sessions. While the Dow dipped 44.77 points or 0.2 percent to 30,154.54, the Nasdaq climbed 63.13 points or 0.5 percent to 12,658.19 and the S&P 500 rose 6.55 points or 0.2 percent to 3,701.17.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan's Nikkei 225 Index edged up by 0.2 percent, while China's Shanghai Composite Index jumped by 1.1 percent.
The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index is just above the unchanged line, the French CAC 40 Index is up by 0.4 percent and the German DAX Index is up by 0.8 percent.
In commodities trading, crude oil futures are rising $0.30 to $48.12 a barrel after edging up $0.20 to $47.82 a barrel on Wednesday. Meanwhile, after climbing $3.80 to $1,859.10 an ounce in the previous session, gold futures are spiking $33.50 to $1,892.60 an ounce.
On the currency front, the U.S. dollar is trading at 102.99 yen versus the 103.47 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.2241 compared to yesterday's $1.2200.
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