Stocks look poised to gain at the open Thursday as investors move past the U.S. Federal Reserve’s rate increase and digest reports on U.S. retail sales and jobless claims.

The Fed boosted its target for the federal funds rate to 5% and said it may need to raise it again, though it also opened the door for a pause. It was the 16th straight increase since June 2004, when the rate stood at 1%.

U.S. retail sales climbed during April as motorists paid more at the pump, but demand at outlets other than gasoline stations was weak.

Retail sales increased by a seasonally adjusted 0.5%, the Commerce Department said today. Sales rose an unrevised 0.6% in March.

In a separate report, the Labor Department said initial weekly jobless claims remained high last week, falling 1,000 to 324,000.

The Canadian dollar opened at US90.52¢, down 0.43 of a cent.

In earnings news, Air Canada parent ACE Aviation Holdings Inc. reported a first-quarter profit of $118 million, reversing a year-earlier loss of $77 million.

Insurance giant American International Group said its first-quarter profit fell 16%.

Media conglomerate News Corp. reported its profit more than doubled, led by its cable-network operations.

In other business news, Research In Motion is launching its BlackBerry wireless service in China through its partner, China Mobile Communications Corp.

Petro-Canada said it plans to offer about US$113 million for Canada Southern Petroleum Ltd. after weeks of negotiations with the target company failed to produce a deal. Calgary-based Petro-Canada said today it will bid US$7.50 per share for Canada Southern.

Crude-oil futures rose 37¢ to US$72.50 a barrel in early trading Thursday, and gold and copper futures also climbed.

Overseas, Toyota Motor’s prediction of a profit decline hurt the Nikkei 225 in Tokyo, while European stock markets advanced on the back of commodity sector gains.

The Nikkei feel 89.79 points, or 0.53%, to 16.862.14 points on the Tokyo Stock Exchange.

In Hong Kong, the blue-chip Hang Seng index rose 60.19 points, or 0.35%, to 17,140.78.

Toronto stocks dipped lower Wednesday, as higher commodities prices were offset by losses in the technology sector, and as the market took in an interest rate hike by the U.S. Federal Reserve.

The S&P/TSX composite index was down 11.90, or 0.10%, to 12,316.31.

The S&P/TSX Venture Exchange index finished up 20.54, or 0.63%, to 3,271.57.

In New York, markets were mixed as investors, absorbing today’s interest rate hike by the U.S. central bank, were left in doubt about the Fed’s future direction on rates.

The Dow Jones Industrial Average closed up 2.88 points at 11,642.65, the Nasdaq Composite Index finished down 17.51 points at 2,320.74, while the S&P 500 Index fell 2.29 points to 1,322.85.