WASHINGTON (dpa-AFX) - Following the mixed 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 S&P 500 futures up by 0.4 percent.
Early buying interest may be generated in reaction to upbeat earnings news from Micron Technology (MU), as the chipmaker is jumping by 2.4 percent in pre-market trading.
The advance by Micron comes after the company reported better than expected fiscal third quarter results and provided upbeat revenue guidance for the current quarter.
Banking stocks may also move to the upside after the Federal Reserve released the results of its annual bank stress test after the close of trading on Wednesday.
The Fed said the results demonstrate that large banks are well positioned to weather a severe recession and continue to lend to households and businesses even during a severe recession.
'All 23 banks tested remained above their minimum capital requirements during the hypothetical recession, despite total projected losses of $541 billion,' the Fed said.
On the U.S. economic front, the Labor Department released a report showing an unexpected pullback by first-time claims for U.S. unemployment benefits in the week ended June 24th.
The report said initial jobless claims fell to 239,000, a decrease of 26,000 from the previous week's revised level of 265,000. Economists had expected jobless claims to rise to 270,000 from the 264,000 originally reported for the previous week.
The upwardly revised figure for the previous week reflected the most jobless claims since the week ended October 23, 2021.
A separate report released by the Commerce Department showed the U.S. economy grew by much more than previously estimated in the first quarter of 2023.
The Commerce Department said gross domestic product jumped by 2.0 percent in the first quarter compared to the previously estimated 1.3 percent increase. Economists had expected the pace of GDP growth to be unrevised.
Shortly after the start of trading, the National Association of Realtors is scheduled to release its report on pending home sales in the month of May. Pending home sales are expected to inch up by 0.2 percent in May after coming in unchanged in April.
After an early move to the downside, stocks turned in a relatively lackluster performance over the course of the trading session on Wednesday. The major averages bounced back and forth across the unchanged line before closing mixed.
While the Nasdaq pulled back well off its best levels of the day, the tech-heavy index still closed up 36.08 points or 0.3 percent at 13,591.75. Meanwhile, the S&P 500 edged down 1.55 points or less than a tenth of a percent to 4,376.86 and the Dow dipped 74.08 points or 0.2 percent to 33,852.66.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan's Nikkei 225 Index inched up 0.1 percent, while China's Shanghai Composite Index slipped by 0.2 percent.
The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index is down by 0.4 percent, the German DAX Index is up by 0.2 percent and the French CAC 40 Index is up by 0.6 percent.
In commodities trading, crude oil futures are slipping $0.18 to $69.38 a barrel after surging $1.86 to $69.56 a barrel on Wednesday. Meanwhile, after edging down $1.60 to $1,922.20 ounce in the previous session, gold futures are falling $12.80 to $1,909.40 an ounce.
On the currency front, the U.S. dollar is trading at 144.70 yen versus the 144.48 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0903 compared to yesterday's $1.0913.
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