U.S. stock futures were higher early Thursday morning as investors digested Toyota's earnings and awaited sales reports from several large retailers.

This is after on Wednesday, U.S. stocks dropped as oil futures surged past $123 a barrel and financials showed more weakness. The Dow industrials fell 206 points, or 1.59%, the Nasdaq Composite fell 44 points, or 1.80%, and the S&P 500 dropped 25 points, or 1.81%.

But today stocks looked set to recover from the previous session large pull back. While Toyota's results show the automaker also struggling in the U.S. market, a stronger dollar may have helped boost sentiment. Investors also expect April retail sales to be strong rising about 1.5% to 2% due to an extra selling day and warmer weather at the beginning of the month.

Not much economic data is due today, only weekly initial jobless claims and March wholesale inventories.

Also on the docket today is a vote the housing aid bill, the Democrats' plan to help strapped homeowners refinance into government-backed mortgages. Already blamed by many for not doing enough to address the crisis, President Bush will likely veto the measures.

Companies in focus today include Toyota Motor Co. (NYSE: TM), which reported quarterly results today. Profit for the quarter sank 28% from the previous year due to the dollar's weakness and the yen's strength. Sales in N.America were slower as a result, hurting the Japanese automaker's earnings. Toyota also said that for the current fiscal year through March 2009, it expects sales to drop for the first time in nine years - and net profit to plunge 27%.

Best Buy Co. Inc. (NYSE: BBY) is buying a 50% stake in Europe's largest cell phone retailer, The Carphone Warehouse, for $2.1 billion. The Carphone Warehouse will add its 2,400 U.S. and European stores into the new joint venture.

Rupert Murdoch's New Corp. (NYSE: NWS) said Wednesday its quarterly net profit rose to $2.7 billion, or 91 cents per share as the company saw higher advertising sales at the Fox TV network and Fox News Channel. The results included a one-time gain from its stock swap with Liberty Media. Excluding special items earnings were 30 cents a share, a penny short of estimates. Revenue rose 16% to $8.75 billion, topping estimates.

Also news from across the pond have the Bank of England holding rates steady at 5%. The European Central Bank is also expected to hold its rates as inflation worries, at least for now, outweigh slowdown concerns.