MARKET SNAPSHOT: U.S. Stocks Open Higher; Wal-Mart Cuts Outlook

By Anora Mahmudova and Carla Mozee, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks opened slightly higher on Thursday, but gains were capped by a larger-than-expected jump in jobless claims and a cut in outlook by Wal-Mart, the world's largest retail chain.

The S&P 500 (SPX) opened up 3 points, or 0.2%, at 1,950.50. The Dow Jones Industrial Average (DJI) was up 23 points, or 0.2%, at 16,676.33. The Nasdaq Composite (RIXF) began the up 5 points, or 0.1% at 4,439.33.

The retail sector was in focus, as Dow industrials component Wal-Mart Stores (WMT)lowered its earnings forecast. Second-quarter operating profit of $1.21 a share met analyst expectations, and sales of $119.34 billion were above expectations. Wal-Mart shares fell 0.6%.

Department-store operator Kohl's (KSS) posted slightly improved second-quarter earnings from a year ago, despite a decline in sales. Same-stores sales turned positive in July. Shares were up 2.4%.

After Thursday's closing bell, embattled retailer J.C. Penney (JCP) is projected to report a narrower second-quarter loss of 91 cents a share.

Also read: Why retail worries will only grow, and love for Tesla

A report from the Labor Department showed initial jobless claims rose a steeper-than-expected 21,000 to 311,000 in the week ended Aug. 9. But even with that rise, claims were still close to pre-recession levels, boding well for the labor market, which has been strengthening.

The prices paid for goods imported into the U.S. declined by 0.2% in July, the first drop in three months, led lower by fuel prices, the U.S. Labor Department reported separately.

Company news

Nordstrom (JWN) will release results after the close Thursday, and analysts expect the upscale department store chain to post earnings of 94 cents for its second quarter.

Cisco Systems (CSCO) shares shed 1.1%, extending losses from late Wednesday, when the network-equipment maker said it plans to cut up to 6,000 jobs.

Amgen (AMGN) late Wednesday announced disappointing results from a late-stage trial of its blood-cancer treatment, as well as a recall of prefilled syringes of its anemia drug Aranesp. Shares fell 1.5%. (Read more about the day's notable movers here: http://www.marketwatch.com/story/wal-mart-cisco-are-stocks-to-watch-thursday-2014-08-13.)

In other action, the 10-year yield on U.S. Treasurys fell 29 basis points to 2.4% after the jobless claims. September oil futures (CLU4) gave up 13 cents a barrel, while December gold futures (GCZ4) turned higher by $2.70 an ounce. European stocks were higher and Asian stocks finished mixed, with Hong Kong's Hang Seng losing 0.4%.

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