Stock futures point to lower opening as investors turn focus to unemployment figures

Stock futures point to lower Wall Street open

Stock index futures pointed to a lower open Thursday after markets in other countries fell and the government reported a slight rise in new claims for unemployment benefits.

The Labor Department said initial claims for jobless benefits rose by 1,000 to a seasonally adjusted 434,000 last week. That was lower than the 447,000 analysts expected, but stock traders remain wary ahead of Friday’s report on December employment. Analysts expect the government to report the unemployment rate rose last month.

Dow futures fell 24, or 0.2 percent, to 10,492. Standard & Poor’s 500 index futures fell 2.40, or 0.2 percent, to 1,130.60, while Nasdaq 100 index futures fell 1.75, or 0.1 percent, to 1,876.75.

Markets were down in Europe in response to news that China was taking steps to limit lending and prevent its economy from overheating. Traders fear those moves could affect economic growth around the world.

Shanghai’s main index fell 1.9 percent. In afternoon trading, Britain’s FTSE 100 was down 0.1 percent, Germany’s DAX index was down 0.3 percent, and France’s CAC-40 was down less than 0.1 percent.

Earlier, Japan’s Nikkei stock average fell 0.5 percent

The U.S. market seemed to have little reaction to some upbeat December retail sales reports. While it appears shoppers spent a little more over the holiday season as they responded to discounts, consumer spending is expected to remain weak amid high unemployment and tight credit.

Warehouse club operator Costco Wholesale Corp., The Buckle and Children’s Place Retail Stores Inc. all reported monthly sales increases.

Sears Holdings Corp., which operates Kmart and Sears, Roebuck and Co., eked out a small gain and offered fourth-quarter guidance that’s sharply above Wall Street estimates. Others, including Macy’s Inc. and Limited Brands, raised profit outlooks.

The market shrugged off news from homebuilder Lennar Corp., which said orders rose during its fiscal fourth quarter for the first time in more than three years. Buyers were taking advantage of lower prices and federal tax credits. The company also reported a profit as it benefited from an income tax adjustment.

And Samsung Electronics Co. said it expected to report an operating profit of up to $3.44 billion for the fourth quarter, a strong performance that was in contrast to a year-earlier loss. Samsung is the world’s largest manufacturer of flat screen televisions.

After a big gain in stocks Monday on stronger global manufacturing data, trading has been lackluster.

The cautious tone seen Tuesday and Wednesday comes as investors await the December employment report. Economists forecast the unemployment rate rose rose to 10.1 percent from 10 percent and that employers shed 8,000 jobs.

The employment news, if worse than expected, could intensify concerns that the economy’s recovery is losing steam.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.84 percent from 3.83 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, was unchanged from 0.05 percent.

The dollar rose against other major currencies, while gold prices fell.