Investors on hold ahead of oil report

Stagflation redux

More Videos

Quick Vote

How big is your carbon footprint?

• Tiny
• Midsize
• Large
• Enormous

or View results

NEW YORK (CNNMoney.com) -- Stock futures edged narrowly higher Thursday, as investors awaited the latest look at oil and fuel supplies and weighed mixed reports from two major retailers.

About an hour before Wall Street's open, Nasdaq and S&P futures were pointing to a flat start when compared to fair value.

Oil prices fell back $1.21 in electronic trading. A barrel of U.S. crude was trading at $129.82. Crude prices have fluctuated recently and could see more dramatic movements after the release of the government's weekly fuel report at 10:30 a.m. ET.

Corporate news

Retailer Sears Holdings (SHLD, Fortune 500), which operates the Sears and Kmart chains, reported an unexpected loss for its fiscal first quarter as it increased promotions and markdowns to clear slow-moving merchandise. It also warned that it expects its sales and margins to be pressured for the rest of the year due to tough economic conditions.

But wholesale club retailer Costco (COST, Fortune 500) reported improved earnings that narrowly topped forecasts. Its sales were lifted by cash-strapped shoppers looking for bargains.

TiVo reported late Wednesday that its net income more than quadrupled in the first quarter, although it said it expects to return to a loss in the current period. Shares initially rose in after-hours trading following the report, then slipped narrowly following the conference call with investors that included guidance.

After the bell Thursday, computer maker Dell (DELL, Fortune 500) is due to report results, with analysts forecasting a narrow decline in earnings.

General Motors (GM, Fortune 500) is working on additional restructuring measures to deal with the accelerating shift by auto buyers from pickups and SUVs to more fuel-efficient vehicles, according to Associated Press. Last week rival Ford Motors announced production cuts and signaled it could close additional plants due to what it said was structural change in the market.

Other companies to watch include Bear Stearns, whose shareholders are due to approve the buyout by JPMorgan Chase (JPM, Fortune 500).

The chief executives of UAL Corp.'s (UAUA, Fortune 500) United Airlines and US Airways are set to meet today to discuss a possible deal.

And Yahoo (YHOO, Fortune 500) CEO Jerry Yang told an investors conference in California that he is still waiting for a clearer proposal from Microsoft about a possible partnership between the two firms in the wake of Microsoft dropping its attempt to buy Yahoo. He said said that Yahoo had been willing to be acquired by Microsoft "for the right price." Shares of Yahoo climbed 1.3% in after-hours trading following the remarks.

Economic news

The U.S. economy grew at an annual 0.9% rate in the first quarter, a slightly faster pace than previously reported, according to the government's revised reading on gross domestic product. Last month it had reported an initial reading of 0.6% growth. The new reading was in line with forecasts of economists surveyed by Briefing.com.

Initial jobless claims rose slightly to 372,000 last week from the previous week's reading of 368,000, which was revised slightly higher. That new reading was also roughly in line with economists forecasts.

Federal Reserve Chairman Ben Bernanke is due to speak at 2:30 p.m. ET on the steps the central bank can take to provide cash and stability to financial markets. Fed Vice Chairman Donald Kohn is due to speak at 7 p.m. on money markets and financial stability.

In global trade, Asian stocks bounced back. European shares rose in midday trading.