US open; Shares power forward

LONDON (ShareCast) - US shares powered forward in morning trading as sales updates from the retail sector suggested consumer confidence might be returning.

The Dow is currently 181 points ahead at 9,983. Nasdaq (NASDAQ: news) has added 46 at 2,102 while the S&P 500 gained 16 at 1,063. Retailers are proving the big attraction.

Costco reported a slightly better-than-expected like-for-like sales increase in October, but Gap's sales climbed 4%. Initial jobless claims fell by 20,000 to 512,000 in the week ended 31 October versus expectations of a drop to 522,000.

The number of continuing claims fell by 68,000 to 5.8 million, as forecast. Tomorrow, monthly non-farm payrolls figures are due and another 175,000 jobs tipped to have been lost during the month. The rate of unemployment could hit 10%, economists suggest.

In other corporate news, General Motors (NYSE: GM - news) will cut some 10,000 jobs as part of the planned restructuring of its European arm. The car giant said Wednesday night that jobs will have to go after its surprise decision to abandon the sale of Opel and Vauxhall. John Smith, GM's group vice president, said a new business plan would be put before European governments 'very shortly', but did not give any further details.

Cisco reported forecast beating figures after the bell on Wednesday. First-quarter profits came to $1.8bn compared $2.2bn last time.