NEW YORK (CNN/Money) - Investors were watching to see if stocks would continue a strong three-day rally, which extended to overseas markets early Thursday, as futures pointed higher on news that jobless claims fell sharply last week.

U.S. stock futures were slightly up in early trading, indicating a higher opening for U.S. stocks, following gains of more than 1 percent in major U.S. indexes Wednesday.

Major markets overseas built on those gains, with major Asian indexes closing higher Thursday, while major European markets were up in early trading.

Markets were set to open in positive territory after the Labor Department said the number of Americans filing new claims for jobless benefits fell sharply last week to 321,000 from an upwardly revised 341,000.

The number was well short of the fall to 330,000 forecast by economists, and it snapped three straight weeks of gains.

A reading on economic indicators is due later Thursday. Economists surveyed by Briefing.com forecast that leading economic indicators are expected to decline 0.2 percent for April after a 0.4 percent drop in March.

Oil prices were slightly higher in early trading, following Wednesday's sharp sell-off after a strong U.S. fuel inventory report.

The June light crude contract gained 27 cents to $47.49 a barrel in electronic trading, while the July contract for Brent crude gained 9 cents to $48.24.

Treasury prices drifted before the opening bell, with the yield on the 10-year note flat at 4.08 percent. The dollar gained ground on the euro and yen.

In corporate news, the Wall Street Journal reports that America West Airlines (Research) and bankrupt US Airways (Research) are close to finalizing a merger deal that could be announced as soon as Thursday.

For a more detailed look at the markets before the open, click here.