European markets, U.S. Economic Reports, Earnings

The major European markets are falling for the second straight day on Thursday, as risk aversion has led to an exodus away from equities. Greeks took to streets in protest against the austerity measures the government is proposing to implement in compliance with the diktats that come along with the EU/IMF loans.

The French CAC 40 Index and the German DAX Index are down 2.35% and 1.75%, respectively, while the U.K.’s FTSE 100 Index is moving down 1.28%.

On the economic front, the Office for National Statistics reported that retail sales in the U.K. rose 1.8% year-over-year in April, in line with expectations and also at the same pace as in the previous month. On a monthly basis, sales rose 0.3%, slightly better than the 0.2% increase forecast, although smaller than the revised 0.5% increase in March.

U.S. Economic Reports

After falling for four consecutive weeks, first-time claims for unemployment benefits unexpectedly showed a notable increase in the week ended May 15th, according to a report released by the Labor Department.

The report showed that initial jobless claims rose to 471,000 from the previous week's revised figure of 446,000. The increase surprised economists, who had expected jobless claims to slip to 439,000 from the 444,000 originally reported for the previous week.

The Conference Board is scheduled to release a report on its leading indicators index for April at 10 AM ET. The consensus estimate calls for a 0.2% increase in the leading indicators index for the month.

The leading economic index rose 1.4% month-over-month in March following a 0.4% increase in February, with the index reaching a record high. The coincident index rose 0.1% in March on top of a 0.1% increase in the previous month, while the lagging economic index rose 0.2%.

The results of the Philadelphia Federal Reserve's manufacturing survey are also due out at 10 AM ET. Economists expect the diffusion index of current activity to show a reading of 20.7 for May.

Conditions in the manufacturing sector improved in April, with the business activity index rising to 20.2 from 18.9 in March. The new orders index rose 4.6 points, while the shipments index fell by 8 points. Despite rising 4 points, the unfilled orders index remained negative at -0.9, but theinventories index improved to 2 from -11 in the previous month. Meanwhile, the employment index slid back 1.1 points to 7.3. The business outlook was less optimistic, with the 6-month business activity index dropping 8 points to 44.2.

Earnings

Staples said its first quarter adjusted earnings rose 27% to 28 cents per share last year. Sales rose 4% to $6.1 billion. Analysts estimated earnings of 27 cents per share on revenues of $6.06 billion. The company expects adjusted earnings of 18-20 cents per share for the second quarter and $1.25-$1.33 per share for the full year. The consensus estimates call for earnings of 20 cents per share for the quarter and $1.33 per share for the year.

Williams-Sonoma reported first quarter net revenues of $718 million, up 17.3% year-over-year. On a non-GAAP basis, the company reported earnings of 23 cents per share compared to a loss of 14 cents per share for the year-ago period. Analysts estimated earnings of 12 cents per share on revenues of $675.57 million. The company raised its guidance for the full year, now expecting revenue growth of 6%-9% and non-GAAP earnings of $1.39-$1.48 per share. The Street estimates revenue growth of 5.80% and earnings of $1.33 per share.