Rise in jobless claims weighs on stock futures

NEW YORK (AP) — Stocks futures are weakening after weekly unemployment claims rose more than expected.

The Labor Department reported Thursday that new jobless claims rose to 640,000 last week. That was just above analysts' expectations of 635,000.

The total number of workers continuing to file claims for unemployment benefits topped 6.13 million, the 12th straight weekly record.

Stocks futures have been rising as stronger-than-expected earnings from a handful of companies boost hopes that the economy could be stabilizing.

Dow Jones industrial average futures are up 53, or 0.7 percent, at 7,869. They had been up as much as 82 points earlier. Standard & Poor's 500 index futures are up 10 percent to 847 while Nasdaq 100 index futures are up 18.50 to 1,342.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

NEW YORK (AP) — Stocks are pointing to a higher open Thursday after stronger-than-expected earnings from a handful of companies boosted hopes that the economy could be stabilizing.

Several companies are offering investors nuggets of optimism: Apple Inc.'s 15 percent increase in earnings boosted hopes for technology companies. Defense contractor Raytheon Co. raised its full-year earnings forecast. PNC Financial Services' first-quarter profit of $1.03 a share was well ahead of the 42 cents analysts had been expecting.

Not all numbers were upbeat. Earnings from UPS Inc., the world's largest shipping carrier, fell short of expectations.

The results come ahead of reports on unemployment claims and sales of existing homes.

Government figures are expected to show that new jobless claims increased last week while the total number of people receiving unemployment insurance set a record for the 12th straight week.

A real estate trade group's report is expected to show sales of existing homes declined slightly in March after jumping sharply a month earlier.

Ahead of the readings, Dow Jones industrial average futures rose 67, or 0.9 percent, to 7,883. Standard & Poor's 500 index futures rose 8.50, or 1 percent, to 845.40. Nasdaq 100 index futures rose 22.25, or 1.7 percent, to 1,345.75.

The rise in stock futures comes as stocks ended mostly lower Wednesday amid worries about the health of banks.

Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.97 percent from 2.94 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.14 percent from 0.13 percent Wednesday.

Light, sweet crude rose $1.04 to $49.89 per barrel in electronic trading on the New York Mercantile Exchange.

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

Overseas, Japan's Nikkei stock average rose 0.22 percent. In afternoon trading, Britain's FTSE 100 rose 0.4 percent, Germany's DAX index slipped 0.13 percent, and France's CAC-40 rose 0.2 percent.