US open: Stocks rise as investors weigh economic data ahead of Fed rate decision

US stocks rebounded on Thursday, ending a three-day losing streak, as investors weighed data on weekly jobless claims and import prices.

The Dow opened up 0.1% while the S&P 500 rose 0.07% and the Nasdaq increased 0.15%.

Jobless claims rose by 13,000 to 282,000 in the week to 5 December, compared with analysts' expectations for a 269,000 reading, according to the Department of Labor.

Meanwhile, the average of new claims over the last four weeks was up 1,500 to a seasonally-adjusted 270,750.

Import prices in the US fell 0.4% in November from the prior month as fuel prices slumped 2.5%, following a 0.3% drop in October, according to data from the Department of Labor. Analysts had expected a 0.8% decrease.

Prices have been on a downward trend throughout this year, slipping each month with the exception of May and June.

“We expect import prices to decline further over the medium term as the effects of past dollar appreciation continue to weigh on prices,” according to Barclays Research analysts.

“Ongoing economic weakness in many emerging markets combined with the recent further declines in commodity prices is likely to keep import prices from emerging markets declining for some time.”

Still to come, a report on US household change in net worth for November in the third quarter is due at 1700 GMT while the government’s monthly budget statement will be published at 1900 GMT.

The Federal Reserve is carefully analysing a wide range of economic data as it decides the best timing for an interest rate hike. The central bank is widely expected to raise rates following next week’s policy meeting.

“At next week’s FOMC meeting, which concludes on 16th December, the Fed is now almost universally expected to raise the fed funds rate by 25 basis points, to a range of between 0.25% and 0.50%,” according to Capital Economics.

“In the accompanying statement the Fed will stress again that the pace of additional rate hikes is likely to be unusually gradual. But as Fed Chair Janet Yellen has acknowledged, the future path of interest rates will be entirely data dependent. We believe that a bigger-than-expected rebound in inflation next year will force the Fed to abandon its gradualist philosophy, with the fed funds rate rising to nearly 2.0% by end-2016 and nearly 3.5% by end-2017.”

Oil slides, US dollar weakens

Oil prices declined, with West Texas Intermediate dipping 0.4% to $37.00 a barrel and Brent crude falling 0.02% to $40.10 a barrel at 1418 GMT.

The decline came as OPEC said crude production from its members rose to a three-year high in November and the Middle East oil cartel also raised its 2015 oil demand forecast. Crude output climbed 230,000 barrels per day (bpd) to 31.7m bpd in the last month.

The dollar was ahead against the main currencies, gaining 0.60% and 0.14% against the euro and the pound, respectively, but dropping 0.03% against the yen, while spot gold rose 0.01% to $1,072.85.

In company news, shares in ConocoPhillips headed south after the oil and gas exploration company said it will cut capital spending by 25% next year amid a slump in oil prices.

First Solar slipped after the solar-power company released an uninspiring sales guidance late yesterday.

Men’s Wearhouse edged lower after reporting a third quarter loss of $27.1m.

Lo-Jack Corp. rallied after wireless software group CalAmp Corp. made an offer to buy the software making company.

Atlassian Corp. on Wednesday evening priced its initial public offering higher than expected.

Ciena Corp. fell after the telecom-equipment maker released a lacklustre outlook.