US Stocks Open Higher after Initial Claims Showed Slight Uptick

The major U.S. stock index futures contracts are edging higher shortly before the cash market opening on Thursday as investors try to stop a 4 day losing streak. Helping to boost prices are higher crude oil prices and a weaker U.S. Dollar. Higher Treasury yields may be limiting gains.

At 13:40 GMT, Dow Jones Industrial Average futures are trading 33721, up 96 or +0.29%. S&P 500 Index futures are at 3952.00, up 15.25 or +0.39% and the NASDAQ Composite is at 11562.25, up 52.75 or +0.46%.

The volume is on the light side once again as investors search for a catalyst to drive it out of its current trading range and re-establish its recent uptrend. Unfortunately, we’re not going to see one until Friday’s release of the producer price index (PPI) and University of Michigan Consumer Confidence reports.

Both reports could provide some relief for traders, but the real market moving events will be next Tuesday’s U.S. consumer price index report and Wednesday’s Federal Reserve interest rate decision and monetary policy statement.

Weekly Jobless Claims Report Shows Resilience

Attention turned to the labor market today, but the report continued to show resilience despite the Fed’s attempt to break it. Weekly initial jobless claims figures showed a modest increase over the previous week, but met expectations, the Labor Department said on Thursday. On Friday, November’s producer price index data – which measures wholesale inflation – comes out on Friday.

Stocks Moving Ahead of the Opening

CNBC is reporting on a few stocks moving ahead of the opening bell.

Networking equipment maker Ciena is surging 17% after a substantial top and bottom line beat in its latest quarter.

GameStop reported a wider-than-expected quarterly loss and sales fell short of predictions. CEO Matt Furlong said the company had completed necessary investments and would be very judicious in future spending. GameStop moved between gains and losses in premarket trading.

Rent the Runway surged more than 16% after its quarterly revenue came in well above Wall Street forecasts and the fashion rental company issued an upbeat sales forecast. The company also said its restructuring process was substantially complete.

Short-Term Outlook

We’re expecting another light volume session on Thursday as investors try to stabilize the market ahead of Friday’s inflation reports. The first being the producer price index, the second is the University of Michigan Inflation Expectations. Both aren’t expected to produce any fireworks.

The jobless claims data proved that the Fed still has work to do in getting the labor market to weaken, but the price action suggests investors may have already priced in the possibility of higher and longer Fed rate hikes.

Investors aren’t showing any concerns about a U.S. recession either, which could be another sign that the event is being absorbed. Earlier in the week, stocks were pressured by recession fears after several key banking officials predicted the possibility of the event in 2023.