5th May 2016 12:50
WASHINGTON (Alliance News) - After moving to the downside in the two previous sessions, stocks may regain some ground 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 50 points.
Early buying interest may be generated by a substantial increase by the price of crude oil, with crude for June delivery surging up USD1.87 to USD45.65 a barrel.
The sharp jump by the price of crude oil comes as a raging inferno threatened supplies from Canada's oil sands.
The fire near Ft. McMurray in Alberta has forced the evacuation of more than 80,000 residents, many of whom are workers in the energy sector. Violence in Libya is also fueling the rally in oil prices.
Nonetheless, overall trading activity may be somewhat subdued as traders look ahead to the release of the monthly jobs report on Friday.
The Labor Department report is expected to show an increase of about 200,000 jobs in April, while the unemployment index is expected to edge down to 4.9%.
The data could have a significant impact on the outlook for whether the Federal Reserve will raise interest rates at its next meeting in June.
A report released by the Labor Department this morning showed a bigger than expected increase in initial jobless claims in the week ended April 30th.
The report said initial jobless claims climbed to 274,000, an increase of 17,000 from the previous week's unrevised level of 257,000. Economists had expected claims to inch up to 262,000.
With the increase, jobless claims rose for the second consecutive week after hitting a 42-year low of 248,000 in the week ended April 16th.
Stocks moved mostly lower during trading on Wednesday, adding to the losses posted on Tuesday. With the drop on the day, the tech-heavy Nasdaq ended the session at its lowest closing level in almost two months.
The major averages finished the session in the red but off their worst levels of the day. The Dow fell 99.65 points or 0.6% to 17,651.26, the Nasdaq slid 37.58 points or 0.8% to 4,725.64 and the S&P 500 dropped 12.25 points or 0.6% to 2,051.12.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Hong Kong's Hang Seng Index dipped by 0.4%, while China's Shanghai Composite Index rose by 0.2%. The Japanese markets remained closed.
Meanwhile, the major European markets are roughly flat on the day. While the French CAC 40 Index is just below the unchanged line, the UK's FTSE 100 Index is slightly higher and the German DAX Index is up by 0.1%.
In commodities trading, gold futures are currently trading at USD1,284.30 an ounce, up USD9.90 from the previous session's close of USD1,274.40 an ounce. On Wednesday, gold rose USD17.40. On the currency front, the US dollar is trading at 107.01 yen, unchanged compared to the close of New York trading on Wednesday. Against the euro, the dollar is valued at USD1.1427 compared to yesterday's USD1.1487.
Copyright RTT News/dpa-AFX