Stocks set for slight advance

NEW YORK (CNNMoney.com) -- U.S. stocks were set to open slightly higher Thursday, as investors reacted to unexpectedly strong data on jobless claims and durable goods orders as well as Time Warner's announcement that would separate from AOL, while still fretting over high Treasury yields.

At 9 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were narrowly higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks plummeted Wednesday as bond yields spiked and investors eyed fresh signs that General Motors (GM, Fortune 500) is headed for bankruptcy. The Dow and S&P both shed about 2%, while the Nasdaq lost 1%.

Peter Cardillo, chief market economist for Avalon Partners, said that high bond yields and "a fear factor of government spending, crowding out the market" could continue to haunt the stock markets Thursday.

The government has been issuing massive amounts of debt in recent weeks in an effort to stimulate the sluggish economy. Some $101 billion is being sold this week, including a $26 billion 7-year auction later Thursday.

Economy: Two reports showed improvement in the economy. A report on weekly jobless claims showed a larger-than-expected decline, while the monthly report for durable goods orders showed a higher-than-expected increase.

Initial jobless claims fell to 623,00 in the week ended May 23, a decline of 13,000 from the revised figure for the prior week.

Claims were expected to have declined to 628,000, according to a consensus of economist opinion from Briefing.com.

Orders for durable goods jumped 1.9% in April, a larger increase than expected. Orders were expected to have risen 0.5% in April, according to the Briefing.com consensus, compared to a revised decline of 2.1% the prior month.

A reading on new home sales, due after the market open, is expected to to rise to an annual rate of 360,000 in April from the prior month's 356,000, according to the Briefing.com consensus.

Companies: Auto parts supplier Visteon (VSTN, Fortune 500) filed for bankruptcy protection for its U.S. operations. The company, which is a major supplier to Ford (F, Fortune 500), has been hit hard by the sharp decline in demand for cars.

Media powerhouse Time Warner (TWX, Fortune 500) announced that it would separate itself from online service company AOL. Time Warner said that AOL would be spun into a separate publicly traded company.

World markets: Stocks in Japan finished the session slightly higher. Markets in Hong Kong and China were closed for a holiday. European shares tumbled in midday trading.

Money and oil: The dollar rose versus the euro, but slipped against the yen and the British pound. Oil prices rose 32 cents a barrel to $63.77.