US stocks head for higher open as retail sales reports arrive

Wall Street headed for a modestly higher open Thursday as investors sifted through the first of retailers' April sales figures, trying to get a sense of how consumers are faring in a climate of economic weakness and rising costs.

Wal-Mart Stores Inc., for one, said sales of groceries, flat-screen TVs and medications helped boost sales at stores open for at least a year by 3.2 percent in April -- more than analysts anticipated. But apparel stores, whose merchandise falls into the category of discretionary items, appeared to be still struggling, an indication that consumers remain very cautious as they pay more for gasoline and food.

The sales readings come a day after soaring oil prices knocked the Dow Jones industrial average down more than 200 points. In premarket electronic trading Thursday on the New York Mercantile Exchange, crude rose 24 cents to $123.77 a barrel, after reaching a record of nearly $124 late Wednesday in electronic trading.

Another factor weighing on consumers has been the job market -- the United States has seen four straight months of net jobs losses. However, in a positive sign, the Labor Department said Thursday the number of newly laid off workers seeking unemployment benefits dropped by 18,000 last week to 365,000, a larger decline than expected.

Early Thursday, Dow futures rose 25, or 0.19 percent, to 12,861. Standard & Poor's 500 index futures rose 4.60, or 0.33 percent, to 1,399.90, and Nasdaq 100 index futures rose 5.50, or 0.28 percent, to 1,966.00.

(Agencies)