US pre-open: Stocks to edge up on debt ceiling deal hopes

US stock futures pointed to a slightly firmer open on Thursday amid optimism that a deal will be reached on the debt ceiling to avoid a potential default.

At 1205 BST, Dow Jones Industrial Average futures were up 0.1%, while S&P 500 and Nasdaq futures were 0.3% firmer.

Sentiment got a boost after US President Biden said he was "confident" of reaching a deal with the Republicans on the debt ceiling.

Investors will eye the release of the latest initial jobless claims at 1330 BST, along with the Philly Fed manufacturing survey for May. At 1500 BST, existing home sales data for April are due.

TickMill Group’s market analyst Patrick Munnelly said: "The focus today will be on the release of the weekly jobless claims data and the Philadelphia Fed manufacturing survey.

"The initial jobless claims figures have shown an uptick of late, indicating a potential slowdown in the labour market. The regional manufacturing surveys have exhibited volatility but have generally indicated a downward trend. However, there is potential for an improvement in the Philadelphia Fed survey following last month's unexpectedly weak outcome.

"There is a bevy of Federal Reserve speakers on deck today. Fed Vice Chair nominee Jefferson, a voting member with a neutral stance, will deliver a speech on the Economic Outlook. Fed's Barr, another voting member with a neutral stance, will provide the second part of his testimony at the Senate Banking Committee. Additionally, Fed's Logan, who is a voter in 2023 and holds a neutral stance, will also deliver remarks."

On the corporate front, results are due from Walmart and Alibaba.