NEW YORK—U.S. stock futures plummeted after weekly jobless claims rose more than expected, despite a surprise jump in demand for durable-goods.
After the reports, Dow Jones Industrial Average futures were down 85 points, while Standard & Poor's 500 futures were down 11 and Nasdaq Composite futures fell 17. Prior to the data, Dow futures were down 67 points, S&P futures fell 8 and Nasdaq futures were down 10.
Casting further shadows on the labor market, weekly jobless claims unexpectedly surged last week by 22,000 to 496,000 in the week ended Feb. 20, their highest level in over three months, according to the Labor Department. Economists surveyed by Dow Jones Newswires had expected initial claims to decrease by 13,000.
A separate report from the Commerce Department showing that durable-goods demand rose twice what was expected did little to boost stock futures. Consistent with other data showing a recovery in manufacturing, the report stated that manufacturers' orders for goods designed to last three years increased 3.0% to a seasonally adjusted $167.91 billion. Economists had projected a 1.5% climb.
The drop in futures reversed course from Wednesday, when stocks rose after Federal Reserve Chairman Ben Bernanke told a Congressional House panel the central bank plans to keep interest rates low at least for several months. Mr. Bernanke will resume testimony today before the U.S. Senate Committee on Banking, Housing, and Urban Affairs at 9 a.m. EST.
Concerns over the euro zone resurfaced after Standard & Poor's said Wednesday that Greece was on the verge of junk status within a month, while Moody's said it would keep the rating unchanged if promised spending cuts by the government are enacted.
Among stocks in focus, Coca-Cola fell 3.2% in premarket trades after it agreed to buy most of its largest bottler, Coca-Cola Enterprises. The report said the deal could be worth between $12 billion and $13 billion including assumed debt and would leave out operations in several European countries.
Several other food and beverage companies reported earnings, including H.J. Heinz, which edged up 0.1% after its fiscal third-quarter earnings fell 5.7% amid the sale of two of its businesses, but sales were strong in the U.S. and U.K.
Dr Pepper Snapple Group jumped 8.9% in premarket trading after reporting slightly better-than-expected fourth-quarter earnings and predicted 2010 sales would rise 3 to 5%.
Dynegy's fourth-quarter loss widened on asset sales and mark-to-market losses, as the electricity generator reported a steeper-than-expected decline in revenue. Shares of Dynegy tumbled 11% in premarket trades.
In other markets, the dollar weakened against the yen, but strengthened against the euro. Treasurys climbed, with the 10-year note up 9/32 to yield 3.661%. Crude-oil prices declined and gold futures also fell.
