(RTTNews) - Following the strength seen in the previous session, stocks may move back to the downside in early trading on Thursday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.3 percent.
The downward momentum on Wall Street partly reflects a negative reaction to earnings news from Walmart (WMT).
While Walmart reported fourth quarter results that exceeded analyst estimates, the retail giant provided weaker than expected earnings guidance for the current year.
Negative sentiment may also be generated by a continued spike by the price of crude oil amid concerns about a military conflict between the U.S. and Iran.
However, the futures regained some ground following the release of a report from the Labor Department showing first-time claims for U.S. unemployment benefits fell by much more than expected in the week ended February 14th.
The Labor Department said initial jobless claims slid to 206,000, a decrease of 23,000 from the previous week's revised level of 229,000.
Economists had expected jobless claims to slip to 225,000 from the 227,000 originally reported for the previous week.
A separate report released by the Commerce Department showed the U.S. trade deficit unexpectedly widened in the month of December due to a surge in imports and a slump in exports.
The Commerce Department said the trade deficit grew to $70.3 billion in December from a revised $53.0 billion in November.
Economists had expected the trade deficit to shrink to $55.8 billion from the $56.8 billion originally reported for the previous month.
Shortly after the start of trading, the National Association of Realtors is due to release its report on pending home sales in the month of January. Pending home sales are expected to jump by 2.5 percent in January after plummeting by 9.3 percent in December.
The Conference Board is also scheduled to release its report on leading economic indicators in the month of December.
Stocks showed a strong move to the upside in early trading on Wednesday before giving back some ground over the course of the session. The major averages pulled back well off their highs of the session but managed to end the day firmly in positive territory.
Adding to the modest gains posted during Tuesday's session, the Nasdaq advanced 175.25 points or 0.8 percent to 22,753.63, the S&P 500 climbed 38.09 points or 0.6 percent to 6,881.31 and the Dow rose 129.47 points or 0.3 percent to 49,662.66.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Thursday, with several markets still closed for holidays. Japan's Nikkei 225 Index climbed by 0.6 percent, while South Korea's Kospi surged by 3.1 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the German DAX Index is down by 1.1 percent, the French CAC 40 Index is down by 0.9 percent and the U.K.'s FTSE 100 Index is down by 0.7 percent.
In commodities trading, crude oil futures are surging $1.36 to $66.55 a barrel after soaring $2.86 to $65.19 a barrel on Wednesday. Meanwhile, after jumping $103.60 to $5,009.50 an ounce in the previous session, gold futures are edging down $1.40 to $5,008.10 an ounce.
On the currency front, the U.S. dollar is trading at 154.97 yen versus the 154.82 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1755 compared to yesterday's $1.1782.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
