[R]9:00AM U.S. stock futures pointed higher on strengthening dollar.[/R]
U.S. stock futures advanced on Thursday, boosted by solid gains in overseas markets and strength in the U.S. dollar vs. the Japanese yen. The dollar rose 1.2% at 116.97 yen. Sluggish retailer sales in February and a rate hike from the European Central Bank failed to hurt the upside trend. Some of the largetst nation's chain stores reported sales results for February, with the overall performance expected to be tepid after cold weather hit parts of the U.S. Among pre-market highlights, Hollis-Eden Pharmaceuticals (HEPH: chart)fell 21% as U.S. Dept. of Health found its Neumune drug 'technically unacceptable’.

Among companies releasing quarterly results, warehouse retailer Costco Wholesale (COST: chart) posted a Q2 profit decline of 16%, blaming faster growing costs. Net income for the quarter dipped to 54 cents per share from 62 cents per share, but excluding special items, Q2 income would have been 66 cents per share. Revenue increased 7.5% to $15.1 billion from $14.06 billion a year earlier. On average, analysts predicted a quarterly profit of 66 cents per share and sales of $15.48 billion. Hovnanian Enterprises (HOV: chart), home builder, is due to report earnings. On the economic news front, initial jobless claims totaled 328,000 last week, the lowest level in a month and down a better-than-expected 10,000 from the previous week. S&P 500 futures rose 10.40 points to 1,403.60 and Nasdaq 100 futures improved 20.50 points to 1,758.00. Dow industrial futures climbed 59 points to 12,260.

[R]Initial jobless claims dropped 10,000.[/R]
Thursday morning, the Department of Labor released its report on initial jobless claims in the week ended March 4, showing that jobless claims fell more than economists had been expecting. The decrease may generate some optimism about the strength of the February employment report. The report showed that initial jobless claims fell by 10,000 to 328,000 from the previous week's unrevised figure of 338,000. Economists had been expecting a much more modest decline to about 335,000. At the same time, the Labor Department said that the less volatile four-week moving average rose to 339,000 from the previous week's unrevised average of 335,250. With the increase, the moving average rose to its highest reading since the week ended October 29, 2005. The report also showed that continuing claims fell to 2.526 million in the week ended February 24 from the preceding week's revised level of 2.624 million. As mentioned above, the Labor Department is scheduled to release its report on employment in the month of February on Friday. Economists currently expect the report to show that the economy added around 100,000 jobs during the month. On Wednesday, a report from Automatic Data Processing, Inc. showed that private non-farm employment grew a modest 57,000 in February following an increase of 121,000 in January. Economists had been expecting employment to increase by about 100,000.


[R]8:30AM Asia finished mostly higher Thursday with gains in domestic stocks.[/R]
Asian markets finished mostly higher on Thursday. Japanese Nikkei rose 1.9% to 17,090.31. Toshiba rallied 4.9% after Goldman Sachs recommended investors to buy the stock. Nippon Steel, the world second-biggest steelmaker, settled up 4.5% with the share boosted as investors sought stocks, which are likely to lift dividend payouts. Retail group Daiei soared 7.1% after the Nikkei daily reported Aeon would take a 15% stake in the struggling supermarket and department operator. Inpex Holdings, the largest oil producer in Japan, advanced 1.6% as the crude-oil prices ended at their highest level in almost a week.

In Hong Kong, the Hang Seng Index ended 1.36% higher at 19175.17, boosted by stronger-than-expected earnings by Hong Kong Exchanges & Clearing as the stock surged 3.6% after the city''s stock-and-derivatives exchanges operator posted an 88% rise in its 2006 net profit, on a strong increase in market turnover and investment income last year. Hong Kong carrier Cathay Pacific also gained 2.5%, as the company on Wednesday reported net profit for 2006 rose 24% on strong passenger loads and surcharges.

South Korean Kospi Index advanced 0.92% to 1,423.89 and Taiwan Weighted Price Index added 1.24% to 7,573.87. Australia S&P/ASX 200 Index bucked the trend and dipped 0.1% to 5,799.60 while Singapore Straits Times Index surged 2.1% to 3,122.49.


[R]8:15AM U.S. Retailer posted disappointing March same-store sales.[/R]
U.S. largest chain stores started reporting sluggish same-store sales amid rough and choppy shopping in February. Unseasonably cold weather in February dampened lightweight apparel sales. Wal-Mart Stores Inc. (WMT: chart) said Thursday its February same-store sales rose 0.9%, missing estimates of an increase by 1.5%. Total company sales for the four weeks ended March 2 rose 8.1% to $26.79 billion. The retailer projected March same-store sales are to rise between 1% and 2%.

Warehouse retailer Costco Wholesale (COST: chart) reported 4% in its February same-store sales, missing the average analyst estimate of 5.1% growth.

Limited Brands Inc. (LTD: chart) said Thursday its February same-store sales rose 3%, coming shy of analyst estimates of same-store sales increase by 4%. Net sales for the four weeks ended March 3 rose to $730.5 million from $635.8 million.

Bebe Stores (BEBE: chart) posted a 2.2% decline in same-store sales, its first monthly decline in 46 months, down from expectations of a 2.2% gain.

Federated Department Stores (FD: chart) said same-store sales for February rose 1.2%, below its previous forecast of a 2% to 3% rise.

The Gap (GPS: chart) said same-store sales fell 4% in February, beating estimates of a drop of 4.8% for the month. Total sales for the four weeks ended March 3 slumped 5% to $910 million from $865 million in the same period a year earlier.

Pacific Sunwear of California (PSUN: chart) announced a 5.7% decline in its February sales at stores open at least one year, missing the average analyst expectations of same-store sales drop of 3.7%.Total sales for the four weeks ended March 3 rose 1.2% to $88.7 million.

Pier 1 Imports (PIR: chart) said its February same-store sales slipped 8.4%. Analysts had expected comparable-store sales to drop 4.4%. Total sales reached $120.5 million, an increase of 14.3%.

Sharper Image Corp. (SHRP: chart) said Thursday its February same-store sales plunged 24%, coming in below forecast of a 16.7% decline. Total sales for the month ended Feb. 28 fell 29% to $22.1 million.

Meanwhile, high-end stores continued to shine. Nordstrom (JWN: chart) reported a 9.1% jump in same-store sales in February, beating the 5.7% estimate.

McDonald’s (MCD: chart) posted February same-store sales increase of 5.7%.