Stock futures were lower early in the morning, indicating another low start on Wall Street as concerns remain about the economic slowdown and the credit crisis. The dollar hitting a new low against the euro and oil reaching new record highs didn't boost investors' sentiment. Upcoming interest rate decision by the Bank of England and the European Central Bank will likely have an impact this side of the pond.On Wednesday stocks started with significant declines only to rebound late getting a boost from the technology sector. The Dow Jones Industrial Average posted its first rise in five sessions of 41 points, or 0.34%, the S&P 500 added nearly 7 points, or 0.52%, and the Nasdaq composite climbed 12 points, or 0.55%.
Not much economic data is to be released today. At 8:30 a.m., weekly jobless initial claims is due and at 10:00 a.m., January pending home sales will be reported.
What investors may watch closely is monthly sales figures that many retailers should report today. Economists expect February same-store sales in the U.S. to rise 0.5% to 1%, according to the International Council of Shopping Centers, the worst since 2003, when sales rose 0.9%. High gas prices combined with a weak housing and credit market influenced consumers' decision. While Costco (NYSE: COST) and Wal-Mart (NYSE: WMT) may have benefited from consumers being price conscious, most other retailers have not.
Meanwhile, the Bank of England has already reached a decision, keeping its benchmark interest rate unchanged at 5.25%. Most economists agree the ECB will keep its benchmark rate unchanged as well. It's not surprising then that the euro rose to record high against the dollar ahead of decision and that oil prices hit a record $105.10 a barrel Thursday. Compounding the weak dollar was Wednesday's report of a surprise drop in U.S. crude supplies and a decision by OPEC not to boost production. Prices retreated somewhat and are now around $104.6 a barrel.
Overseas, Asian stocks finished higher, but European shares were falling by midday trading.
H&R Block Inc. (NYSE: HRB) said its third-quarter loss narrowed due to "higher revenue and smaller losses from the windup of its subprime mortgage lending subsidiary and other charges." Not charges for costs, the company said it would have earned $25 million, or 8 cents per share, beating the 6 cents per share predicted by analysts. Revenue during the quarter rose 4.3% to $972.6 million, below analysts' average prediction of $1 billion.
Meanwhile, Carl Icahn raised his stake in Motorola (NYSE: MOT) to 6.3% from 5%, according to a filing. No doubt his pressures on the company for a restructuring will not cease, but rather increase.
And just in case anyone thought there would be a day without a reminder of subprime and credit crisis, UBS AG (NYSE: UBS) shares fell to a five-year low in Swiss trading after reports said "it probably sold 25 billion francs ($24 billion) of mortgage-backed securities in a "fire sale" and may have more writedowns."
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