Stock futures fall modestly ahead of weekly jobless claims report; inflation jumps in China

Stock futures fall modestly ahead of open

NEW YORK — Stock futures fell modestly Thursday after China reported a sharp jump in inflation. Mixed U.S. economic news also held the market back.

Overseas markets were mixed after China said its inflation rate jumped 2.7 percent in February from 1.5 percent in January. Rapid inflation could force China to raise interest rates. That, in turn, could slow one of the world’s fastest-growing economies and put a damper on a global recovery.

Meanwhile, the Labor Department said workers filing for jobless benefits for the first time fell by 6,000 to a seasonally adjusted 462,000 last week. Economists were predicting a slightly bigger drop, forecasting new claims would fall to 460,000, according to Thomson Reuters.

But the market was unimpressed by the report, which while showing some easing of the labor market, didn’t point to the increase in hiring that investors want to see. Stocks have traded in a narrow range since the Labor Department said on Friday that employers cut fewer jobs in February than analysts expected. The market is looking for more signs of progress.

The Commerce Department said the country’s trade deficit fell in January because of a big drop in imported oil and cars. U.S. exports dipped 0.3 percent. The drop in U.S. exports might give investors pause because a drop in overseas sales could slow the recovery.

Ahead of the opening bell, Dow Jones industrial average futures fell 28, or 0.3 percent, to 10,537. Standard & Poor’s 500 index futures fell 4.80, or 0.4 percent, to 1,140.90, while Nasdaq 100 index futures fell 6.25, or 0.3 percent, to 1,912.50.Corporate dealmaking continued Thursday. Oil company BP PLC will pay $7 billion to acquire exploration rights from Devon Energy Corp. BP will acquire rights to explore in Brazil, the U.S. Gulf of Mexico and Caspian Sea.

Increased mergers and acquisitions in recent weeks has been a positive sign that companies believe the economy is getting stronger.

Major indexes inched higher Wednesday in light trading volume. Light volume throughout the week indicates there isn’t much conviction in trading right now. The Dow and S&P 500 have been hovering near 15-month highs, but investors haven’t been in a rush to send those indexes any higher.

The report on inventories and sales wasn’t strong enough to give the market new direction.

Meanwhile, bond prices dipped Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.74 percent from 3.73 percent late Wednesday.

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

Overseas, Japan’s Nikkei stock average rose 1 percent. Britain’s FTSE 100 fell 0.5 percent, Germany’s DAX index fell 0.2 percent, and France’s CAC-40 fell 0.6 percent.