US open: Dow gains in triple digit on the back of upbeat jobless claims

US stocks staged a solid rebound early on Thursday, as investors were buoyed by a positive jobless claims report.

Just before 15:00 BST, the Dow Jones Industrial Average was up 116 points, while the S&P 500 and the Nasdaq gained 12 and 33 points respectively, having generally finished flat on Wednesday due to weak retail sales data.

The greenback was feeling the pinch on Thursday, losing 0.33% against the pound and 0.54% and 0.17% against the euro and the yen respectively, while gold futures climbed 0.02% to $1,218.50.

Initial weekly unemployment claims slipped by 1,000 in the week ending on 9 May to reach 264,000, according to the Department of Labour, compared with expectations of a 270,000 reading.

The four week moving average fell by 7,750 to hit 271,750, its lowest level since 22 April, 2000.

“The decline should reassure those worried about the strength of the US recovery,” said Paul Ashworth, chief US economist at Capital Economics.

“While retail sales and non-farm payrolls are both coincident indicators, this is a genuine leading indicator.”

Meanwhile, the slide in factory gate prices in the US accelerated in April due to a sharp fall in gasoline prices.

Final demand producer prices fell at a 1.3% year-on-year pace, in comparison to a 0.8% drop in March, according to the Bureau for Labour Statistics.

In company news, restaurant operator Shake Shack jumped 8.9% after reporting late on Wednesday that its first quarter results exceeded expectations.

IT group Cisco Systems gained 0.07% despite reporting a first quarter loss on Wednesday, while clothing maker Perry Ellis jumped 9.37% after reporting an increase in first quarter earnings.

The earnings season continue with fashion retailer Nordstrom, manufacturing equipment Applied Materials, King Digital Entertainment and restaurant group El Pollo Loco Holdings set to report after the close.

Oil prices were broadly flat, with West Texas Intermediate slipping 0.06% to $60.46 a barrel, while Brent fell 0.04% to $66.99 a barrel.