(RTTNews) - Stocks are indicating a moderately lower open on Thursday, looking to erase the modest gains posted during the previous session. The weakness comes as investors shrug off some better than expected retail sales data, focusing on continued bad news regarding the labor market.

Retail sales unexpectedly increased in the month of January, according to a report released by the Commerce Department of Friday, with the increase partly due to a notable increase by motor vehicle and parts dealers.

The report showed that retail sales rose 1.0 percent in January following a revised 3.0 percent decrease in December. Economists had expected sales to fall by 0.8 percent compared to the 2.7 percent decrease originally reported for the previous month.

Excluding an increase in sales of motor vehicles and parts, retail sales still increased by 0.9 percent in January compared to a 3.2 percent decrease in the previous month. The increase surprised economists, who had expected ex-auto sales to fall 0.4 percent.

At the same time, while the Labor Department said jobless claims in the week ended February 7 fell to 623,000 from the previous week’s revised figure of 631,000, economists had been expecting claims to fall to 610,000 from the 626,000 originally reported for the previous week.

The report also showed that the four-week moving average rose to 607,500 from the previous week’s revised average of 583,500, while continuing claims in the week ended January 31 rose to another new record high of 4.810 million.

The Commerce Department is scheduled to release its business inventories report for December at 10 AM ET. The report is expected to show a 0.9 percent decline in business inventories for the month following a 0.7 percent decrease in November.

In other news, investors are looking towards the $789 billion stimulus plan measure that combines separate stimulus bills that were passed by the House and the Senate. The bill is likely to be examined closely by investors to determine what, if any, true value there is in the plan.

The House of Representatives is expected to vote on the measure before the end of the week, while the Senate will vote on the stimulus plan sometime later.

On the corporate front, Activision Blizzard, Inc. (ATVI) is showing weakness in pre-market trading after the company reported fourth quarter results that failed to impress investors.

Meanwhile, Coca-Cola Co. (KO) is indicating a higher open after the company posted fourth quarter adjusted net income that came in better than analysts had anticipated. However, revenue for the quarter failed to meet expectations.

After showing a lack of direction over the course of the trading session, stocks ultimately ended Wednesday’s trading moderately higher. The choppy trading came as traders kept a close eye on activity on Capitol Hill.

Stocks initially saw considerable strength, as investors hunted for bargains following the massive sell-off seen in the previous session. However, some negative economic and corporate news limited the upside for the markets.

The major averages subsequently bounced back and forth across the unchanged line over the course of the session. The Dow eventually ended the day up about 50 points after moving in a 130-point range.

Crude oil futures are falling $0.76 to $35.18 a barrel after declining $1.61 to $35.94 a barrel on Wednesday. The decrease in the previous session came after a report showed another increase in crude oil stockpiles in the week ended February 6th.

The price of gold is also moving lower, trading down $2.50 at $942 after ending the previous session up $30.90 to $944.50 an ounce. Gold ended Wednesday’s trading at a nearly seven-month closing high, as traders looked at the previous metal as a safe haven.

On the currency front, the U.S. dollar is trading at 90.185 yen compared to the 90.4156 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is currently valued at $1.2857.

In overseas trading, stock market across the Asia-Pacific region closed mostly lower on Thursday, with Japan’s benchmark Nikkei 225 Index closing down 3 percent after the Japanese market was closed for a public holiday on Wednesday.

The major European markets have also come under considerable selling pressure. The U.K.’s FTSE 100 Index is currently down 1 percent, while the French CAC 40 Index and the German DAX Index are down 1.2 percent and 1.6 percent, respectively.

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Posted in Categories: Economy, Eurozone, Japan, Releases, USA.

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