Stock futures fall, point to lower opening
Stock futures are falling after a report shows initial claims for unemployment benefits rose unexpectedly for the second straight week.
The Labor Department says first-time requests for jobless benefits rose to 484,000 last week, the highest level since late February. Economists were expecting claims to fall to 440,000. High unemployment is a stumbling block to a sustained economic recovery.
Stocks are set for a pullback after five straight days of gains pushed the Dow Jones industrial average above 11,000 and the Standard & Poor's 500 index above 1,200 for the first time in 18 months.
Dow Jones industrial average futures are down 24, or 0.2 percent, to 11,041. Standard & Poor's 500 index futures dropped 3.50, or 0.3 percent, to 1,203.10, while Nasdaq 100 index futures fell 3.25, or 0.2 percent, to 2,023.25.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) — Stock futures are falling Thursday as investors pause after five straight days of gains.
The latest surge in stocks sent the Dow Jones industrials average above 11,000 and the Standard & Poor's 500 index above 1,200 for the first time in a year and a half.
Overseas markets were mixed.
The drop in U.S. stock futures comes before the government releases weekly data on unemployment claims and monthly reports on industrial production and regional manufacturing.
The weekly jobs report will be a primary focus for traders. Initial claims for unemployment rose unexpectedly last week, signaling that the job market remains tight. High unemployment is considered a key stumbling block to a strong, sustained economic recovery.
Economists polled by Thomson Reuters, on average, forecast the number of people seeking unemployment benefits for the first time fell to 440,000 last week from 460,000 a week earlier. The Labor Department report is due out at 8:30 a.m. EDT.
A separate report is expected to show industrial production grew in March for the ninth straight month. Unlike the jobs or housing market, the manufacturing sector has shown steady, consistent growth as the economy emerges from recession.
Economists expect production at the nation's factories, mines and utilities rose 0.3 percent last month. The report from the Federal Reserve is due out at 9:15 a.m. EDT.
Two regional reports on manufacturing are also due out. The Empire State and Philadelphia Federal Reserve manufacturing indexes will provide snapshots of regional manufacturing activity.
Ahead of the opening bell, Dow Jones industrial average futures fell 21, or 0.2 percent, to 11,044. Standard & Poor's 500 index futures dropped 3.10, or 0.3 percent, to 1,203.50, while Nasdaq 100 index futures fell 5.00, or 0.3 percent, to 2,021.50.
Stocks rose sharply Wednesday after strong economic and earnings reports. The Dow rose 104 points.
JPMorgan Chase & Co. and Intel Corp. both reported better-than-expected earnings and provided upbeat outlooks for the economy.
The Commerce Department said retail sales jumped 1.6 percent in March, the third straight month of gains. The growth topped economists' forecasts. The Federal Reserve's beige book report on regional economic activity showed a recovery is taking hold in most parts of the country.
Meanwhile, bond prices rose Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.85 percent from 3.87 percent late Wednesday.
The dollar rose against other major currencies. Oil rose, while gold fell.
Overseas, Britain's FTSE 100 rose 0.1 percent, Germany's DAX index dropped less than 0.1 percent, and France's CAC-40 rose less than 0.1 percent. Japan's Nikkei stock average rose 0.6 percent.
