By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks wobbled in early trade on Thursday, heading higher as investors weighed strong economic data from China and Japan against a bigger-than-expected jump in weekly jobless claims and earnings from retailers.

Investors await reports on the health of manufacturing and housing sectors. Data on existing-home sales, scheduled for 10 a.m. Eastern time, might shed some light on whether the recent leveling-off in sales was due to higher mortgage rates.

The S&P 500 (SPX) was 3 points, or 0.2%, higher at 1,891.54. The Dow Jones Industrial Average (DJI) gained 19 points, or 0.1%, to 16,551.30. The Nasdaq Composite (RIXF) added 13 points, or 0.3%, to 4,144.25.

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Ahead of the market open, stock futures got a lift from strong manufacturing data out of China and Japan, however, gains quickly dissipated. Data on unemployment benefits weighed on sentiment. New applications for unemployment benefits rose sharply in mid-May, reversing a big drop earlier in the month that put initial claims at a seven-year low. The number of people who applied for new benefits climbed by 28,000 to 326,000 in the week ended May 17, the Labor Department said Thursday. Economists surveyed by MarketWatch expected initial claims to total 315,000 on a seasonally adjusted basis.

Another key set of data for investors will be existing-home sales at 10 a.m. Eastern time, where economists see sales inching up to an annual rate of 4.66 million in April, from 4.59 million in March. Economists fear there could be more to the recent leveling-off in home sales, so far blamed on higher mortgage rates.

Other reports include the Markit national manufacturing survey, due at 9:45 a.m. Eastern time, followed by leading indicators at 10 a.m. Eastern.

In earnings news, Best Buy (BBY) shares jumped 8% after the retailer's adjusted first-quarter profit beat expectations.

Dollar Tree (DLTR) posted first-quarter results that were in line with expectations. Shares rallied 8.4%.

After the market closes, Hewlett-Packard Co. (HPQ) and Gap Inc. (GPS) are among companies set to report. Best Buy, Dollar Tree, H-P are stocks to watch

Sears Holdings (SHLD) said it would close 80 stores this year as its fiscal first-quarter loss widened amid falling revenue and weak same-store sales. Shares fell 3.8%.

Shares of Williams Sonoma-Inc. (WSM) rose 6.9% after the kitchenware retailer late Tuesday reported a rise in its first-quarter profit, beating forecasts.

European stocks got a boost from preliminary euro-zone PMI data that confirmed business activity in the region continued to pick up in May. In Asia, the Nikkei 225 index was the best-performing market, up 2.1% after Markit released its first-ever preliminary version of Japan's manufacturing index, which rose to a two-month high of 49.9 in May.

Gold for June delivery (GCM4) added $13 to $1,301.60 an ounce, while crude for July delivery (CLN4) eased and the dollar lost ground against the euro (EURUSD) after that upbeat PMI data.

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