Stock investors are focused on a report on initial jobless claims, released Thursday, looking for clues about the state of the U.S. economy.
New claims for unemployment benefits fell more than expected last week, according to a government report.
The data could ease fears that the labor market recovery is stalling. Initial claims for state unemployment benefits dropped 27,000 to a seasonally adjusted 365,000, the Labor Department said. That was the biggest weekly drop since early May last year.
Economic reports have been mixed in recent weeks, giving investors no clear signal on the strength of the economic recovery.
Flare-ups in the European debt crisis have given traders pause, but a strong earnings season has been a boon to sentiment.
Later, the Institute for Supply Management's (ISM) April reading on the non-manufacturing sector is seen falling from the prior month. On Tuesday, the ISM report on manufacturing was stronger than expected, sparking a rally.
In other news, Costco Wholesale Corp's April same-store sales rose 4 percent, but were below expectations. Retailers were to report monthly sales on Thursday -- which will be scrutinized for trends in consumer spending.
Reuters contributed to this report.
