NEW YORK, Feb 5 - U.S. stocks were poised for a higher open on Thursday after a steep drop in tech shares in the previous session as investors sifted through a weaker-than-expected report on jobless claims. With the earnings reporting season winding down, the focus moves back to economic indicators. Investors are awaiting the key January payrolls report on Friday. "The overhanging shadow will be tomorrow's monthly unemployment report," said John Person, head financial analyst, Infinity Brokerage Services. "Today's weekly jobless claims report may make traders apprehensive toward any commitments going into Friday's employment data." The Labor Department said on Thursday the number of Americans lining up to claim first-time unemployment benefits rose unexpectedly last week, due in part to bad weather in some parts of the country. Analysts were expecting claims to dip. U.S. business productivity rose at a slower-than-expected pace in the fourth quarter and at the lowest rate in a year, another Labor Department report said.
Equity index futures pointed to a higher open. Standard & Poor's 500 stock index futures for March were up 3.20 points, while Nasdaq futures for the same month rose 9 points. Dow industrials futures added 27 points. "So far stock index futures have a muted reaction to the jobless claims," Person said. " The nonfarm productivity number was neutral to the market as well, so there was no real bullish impetus toward these numbers." U.S. technology stocks fell sharply on Wednesday, with the Nasdaq Composite Index <.IXIC> marking its biggest percentage decline since September after Cisco Systems Inc.'s chief executive made cautious comments on the outlook for technology spending. In corporate news, Wal-Mart Stores Inc. on Thursday reported surprisingly strong January sales, but the world's biggest company said quarterly profits may reach only the low end of its forecast because of a new German tax law. Wal-Mart said fourth-quarter earnings would likely be "around" 63 cents per share. Analysts, on average, were expecting 63 cents per share, according to Research, a unit of Group Plc. Wal-Mart has previously used the word "around" to indicate that results could be slightly above or below expectations. PepsiCo Inc. said on Thursday that its quarterly profit rose on a strong performance from its Gatorade sports drink and diet soft drinks. It also reiterated its 2004 earnings per share forecast. Shares of Cisco rose ahead of Thursday's opening bell. The world's largest maker of equipment that directs Internet traffic rose to $24.27 in extended trading, up from the close of $24.08 on the Nasdaq on Wednesday.//