Stock futures up after dip in jobless claims

NEW YORK - U.S. stocks were headed for a slightly higher open Thursday after the government reported a dip in last week's jobless claims.

The Labor Department's report on initial claims for unemployment declined by 5,000 last week from the previous week. The market's reaction was muted, however. The decrease was a bit smaller than expected and the four-week moving average of initial claims, a less volatile indicator, rose — a sign that the U.S. job market remains strained.

So far this week, the Dow Jones industrial average has fallen more than 270 points. Concerns about tight credit returned the market after profit declines at major investment banks and signals that the industry is going to have to raise more cash. With the nation's money centers under stress, it appears the economy will have a hard time rebounding; borrowing is essential to growth.

At 10 a.m. EDT, Wall Street will examine the Philadelphia Federal Reserve's report on regional manufacturing and the Conference Board's May index of leading indicators for some additional information on the direction of the economy.

Dow futures on Thursday rose 32, or 0.27 percent, to 12,060. Standard & Poor's 500 index futures rose 3.70, or 0.28 percent, to 1,342.50. Nasdaq 100 index futures rose 0.50, or 0.03 percent, to 1,962.00.

Bond prices slipped ahead of the market's open. The yield on the benchmark 10-year Treasury note, which moves opposite its price, edged up to to 4.16 percent from 4.14 percent late Wednesday.

In earnings news, Circuit City Stores Inc. posted a first-quarter loss that was wider than last year's due to sinking sales at established stores. The electronics retailer also said it is suspending its dividend. The company's per-share loss was slightly smaller than analysts expected, but its revenue was lower.

The dollar traded mixed against other major currencies, while gold prices moved lower.

Crude oil futures dipped 13 cents to $136.55 a barrel in premarket electronic trading on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average sank 2.23 percent. In midday trading, Britain's FTSE 100 was up 0.27, Germany's DAX index rose 0.08 percent, and France's CAC-40 rose 0.06 percent.

(Agencies)