WASHINGTON (Alliance News) - After moving notably lower over the course of the previous session, stocks may see some further downside in early trading on Thursday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 26 points.
A negative reaction to quarterly results from Wal-Mart (WMT) may weigh on the markets, with the retail giant falling by 2.8% in pre-market trading.
The downward momentum for Wal-Mart comes after the company reported first quarter earnings that missed analyst estimates and forecast weaker than expected second quarter earnings.
On the other hand, shares of Cisco (CSCO) are moving notably higher in pre-market trading after the networking giant reported better than expected third quarter results and provided upbeat guidance.
Traders are also digesting a slew of US economic data, including a report from the Labor Department showing that initial jobless claims fell to a seven-year low in the week ended May 10th.
The Labor Department said initial jobless claims fell to 297,000, a decrease of 24,000 from the previous week's revised level of 321,000. Economists had been expecting initial jobless claims to inch up to 320,000 from the 319,000 originally reported for the previous week.
With the drop, jobless claims fell to their lowest level since hitting a matching number in the week ended May 12, 2007.
A separate report from the Labor Department showed that consumer prices increased in line with economist estimates in the month of April, with prices for gasoline, shelter, and food all rising
Additionally, the New York Federal Reserve released a report showing that business conditions for New York manufacturers have improved significantly in the month of May.