Wall Street stock futures rose Thursday, helped by stronger-than-expected earnings from retail behemoth Wal-Mart.

Before the opening bell, Wal-Mart said its earnings were flat on lower same-store sales, resulting in revenue falling short of expectations. However, retail giant boosted its profit outlook.

In Canadian earnings news, toy-maker Mega Brands Inc. said losses deepened in the second quarter as sales declined. The company reported a net loss of US$13.3 million, or 36¢ a share for the quarter ended June 30. The results represented a widening of year-earlier losses which totalled $3.6 million, or a 10¢ a share.

A spike in movie attendance helped Cineplex Galaxy Income Fund book net income of $19.9 million for the quarter ended June 30, more than three times higher than year-earlier profits of $6 million.

U.S. July retail sales will be later this morning. They are expected to rise by 0.8%. Inventories and weekly jobless claims data also will be released.

In commodities news, oil futures climbed US$1.44 to US$71.60 a barrel.

Overseas, Hong Kong’s Hang Seng rose 2.1% and Japan’s Nikkei 22 rose 0.8%.

In Europe, market indices in in the UK, Germany and France rose nearly 1% in early trade.

On Wednesday, the benchmark index of the Toronto Stock Exchange ended higher following two days of losses.

The S&P/TSX composite index was up 30.40 points, or 0.29%, at 10,659.87, with six of its 10 main groups higher.

Toronto stocks followed their U.S. counterparts higher, after the U.S. Federal Reserve reported signs of stability in the U.S. economy.

The junior S&P/TSX Venture composite index gained 9.18 points, or 0.78%, to close at 1,186.02.

In New York, U.S. stocks surged ahead on as the U.S. Federal Reserve said it saw signs of a more stable economy.

The Fed said the economy was leveling out, and it left interest rates unchanged at the end of its two-day policy meeting.

The Dow Jones industrial average gained 120.16 points, or 1.30%, to 9,361.61. The S&P 500 climbed 11.46 points, or 1.15%, to 1,005.81. The tech-heavy Nasdaq composite index jumped 28.99 points, or 1.47%, to 1,998.72.

IE