Stocks set to drop
Futures point to lower open after AIG's big loss and rise in oil unsettle investors. Wal-Mart, Costco post sales gains.
NEW YORK (CNNMoney.com) -- Stock futures fell early Thursday after a big loss at AIG raised credit jitters and oil prices rebounded.
Less than two hours before the market open, Nasdaq and S&P futures were lower and suggesting a negative open for Wall Street.
Stocks rose Wednesday as oil prices slid to a fresh three-month low. Tech shares led the advance as investors cheered solid quarterly results from Cisco (CSCO, Fortune 500).
AIG: But after the market close Wednesday, AIG (AIG, Fortune 500) posted a more than $5 billion loss for the second quarter as the insurance giant was stung by the turmoil in the credit markets and downturn in the housing market.
Retail sales: Investors also digested a flurry of monthly sales reports from retailers. Overall, same-store sales are expected to rise 2.3% in July, compared to a 2.9% gain during the year-ago period, according to Thomson Reuters.
Wal-Mart (WMT, Fortune 500), the nation's largest retailer, said same-store sales rose 3% in July. That was slightly lower than the consensus analyst estimate of a rise of 3.4%.
Fellow discount retailerCostco Wholesale (COST, Fortune 500) reported a 10% jump in July sales, beating the 7.8% gain projected by analysts surveyed by Thomson Reuters.
Same-store sales, or sales at stores open at least a year, are a key measure of performance in the retail industry.
Employment: The Labor Department is set to release its weekly report on initial jobless claims at 8:30 am ET.
Wall Street expects new filings for unemployment benefits fell last week to 420,000 from 448,000 the week before, according to estimates gathered by Briefing.com.
Housing: A report on pending home sales in June is due at 10 a.m. ET. Economists surveyed by Briefing.com are expecting a 1% decline, versus a 4.7% drop the previous month.
Oil: Oil prices rebounded after sliding for the past four weeks. U.S. crude for September delivery rose $2.06 to $120.64 a barrel in electronic trading.
Other markets: Japan shares slid on economic woes, but Hong Kong stock gained modestly.
European markets advanced after the Bank of England announced its decision to hold interest rates at 5%. The European Central Bank is also expected to hold rates steady.
Treasury prices were lower. The benchmark 10-year note fell, lifting its yield to 4.05% from 4.04% in the previous session. Bond prices and yields move in opposite directions.
The dollar fell against other currencies. The euro rose to $1.5470 from $1.5412 late Wednesday. The dollar was quoted at ¥109.41 from ¥109.79 in the previous session. 
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