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Wall St. checks it out
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November 8, 2001: 8:59 a.m. ET
Retail reports, jobless claims may give investors reason to hope for recovery.
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NEW YORK (CNNfn) - U.S. stock indexes were primed to open higher Thursday as somewhat better-than-expected retailers' October sales and a lower-than-expected number of new weekly jobless claims gave investors some hope about the health of the economy.
Retailers' sales growth takes on extra meaning considering that October was the first full month of activity after the Sept. 11 attacks against the United States. Economists are trying to determine if consumers went back to the malls and discount stores, and they're particularly watchful for indications about the strength of the year-end holiday season that's
getting underway.
The economy slowed dramatically in the days after the attack as many Americans stayed home, avoiding shopping malls. While store chains report results Thursday, a government report on October retail sales is due next Wednesday.
No. 1 retailer Wal-Mart Stores (WMT: Research, Estimates) said sales at stores open at least a year increased a higher-than-expected 6.7 percent from the same period a year earlier. Shares of the stock rose 47 cents to $54.30 in before-hours trading Thursday.
No. 5 retailer J.C. Penney (JCP: down $0.22 to $23.45, Research, Estimates) said same-store sales overall gained 0.9 percent, despite a 1.9 percent overall decline in department store sales. Shares of the stock lost 22 cents to $23.45 Wednesday.
Both Kmart (KM: Research, Estimates) and Sears (S: Research, Estimates) said same-store sales fell 4.4 percent in October. Shares of Kmart closed down 9 cents at $6.75 Wednesday, while Sears sales fell $1.12 to $46.63 Wednesday.
Initial jobless claims fell last week, the government reported, to 450,000 from a revised 496,000 the previous week. Economists surveyed by Briefing.com expected claims to have edged up to 500,000.
During trading hours, the Federal Reserve will release minutes of its policy making meeting held Oct. 2. That's when the central bank cut rates for the ninth time this year, that time by a half percentage point. Observers are interested in seeing how board members felt about the economy; earlier this week, the board cut rates for the tenth time in 2001, also by a half-point.
The Dow Jones industrial average flinched Wednesday when it tested its pre-Sept. 11 level; after surpassing 9,605.51 in mid-session, the blue-chip indicator fell back to 9,554.37, a 37-point loss for the day. The Nasdaq composite index starts the session at 1,837.53, having gained more than 2 points, while the Standard & Poor's 500 index is at 1,115.80 following a 3-point downturn.
Asian markets finished mostly higher Thursday, with Tokyo's Nikkei index up 1.4 percent. European bourses rose at midday after the European Central Bank cut interest rates by one-half percentage point.
Treasury prices edged upward in early trading, with the 10-year note yield slipping to 4.18 percent from 4.19 percent late Wednesday; the 30-year bond yield was unchanged at 4.79 percent. The dollar declined against the yen, but was flat against the euro. In London, Brent oil futures rose 57 cents to $19.93 a barrel.
Much-beleaguered energy trader Enron (ENE: Research, Estimates) fell 25 cents to $8.80 in before-hours trade Thursday amid reports that energy company Dynegy may invest $2 billion in the company as a precursor to a full merger. Shares of Dynegy (DYN: Research, Estimates) lost a penny to $32.99 before hours.
Dow component Walt Disney (DIS: down $0.29 to $18.46, Research, Estimates) is due to report fiscal first-quarter earnings after trading ends. Analysts surveyed by First Call expect the media and entertainment company to post profit of 7 cents a share, down from 16 cents a year earlier.
Analysts will also be watching for signs of how much Disney's theme park business has been hurt by the Sept. 11 catastrophe. Disney shares fell 29 cents to $18.46 Wednesday. 
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