US open: Dow and S&P advance as trade deficit shrinks

US stocks advanced on Thursday, reversing pre-market losses as investors digested reports on weekly jobless claims and international trade.

Just after 10:00 in New York, the Dow Jones was up 0.48%, while the S&P 500 and the Nasdaq gained 0.57% and 0.38% respectively.

Thursday's US data included an improvement in initial jobless claims fell by 20,000 to a seasonally adjusted 268,000 in the seven days stretching from March 22 to March 28, the second lowest amount since the recession ended.

"Today’s US unemployment claims are the unsatisfying filling between the two meaty employment data points of ADP payrolls yesterday and non-farms tomorrow, so we could well see a further struggle for direction going on in the US,” said IG market analyst Chris Beauchamp.

Meanwhile a Commerce Department update showed the US trade deficit declined 17% in February to the lowest level since 2009, mostly due to cheaper oil and a stronger dollar hitting exports.

The deficit shrank $7.2bn to $35.4bn in February from a revised $42.7bn in January.

"These better-than-expected numbers tie into the narrative of an improving US economy, and the prospect of a rate hike sooner rather than later, however the improvement in the trade deficit was caused by a sharp drop in imports, which might suggest a falloff in demand," said CMC Markets' analyst Michael Hewson.

In company news, Kraft Foods Group fell 0.39% after being accused of manipulating and trying to manipulate the prices of cash wheat and wheat futures.

However, Mondelez International edged forward 0.76% despite being charged for the same offence, while CarMax surged forward 8.44% after reporting that its fourth-quarter profits jumped 44%.

Restaurant chains operator Denny’s Corp rose 4.52% after announcing its board of directors had authorized an additional $100m stock buyback plan.

The dollar was stable against the pound and gained 0.17% against the yen but fell almost 1% against the euro, while gold futures slipped 0.38% to $1,203.50.

Having staged a strong rebound on Wednesday, oil prices retreated on Thursday, with West Texas Intermediate falling 0.97% to $49.61 a barrel, while Brent crude lost 1.85% to $56.06 a barrel.