Stock Futures Dip Even As Jobless Claims Drop

By Stephen Bernard (AP)
NEW YORK — A September rally driven by economic reports regularly beating modest expectations appears to be on hold Thursday even after a weekly report on unemployment claims continued that recent trend. Stock futures fell.

The Labor Department said first-time claims for unemployment benefits fell to their lowest level in two months, but still remain at numbers that indicate economic growth is sluggish. Claims dropped to 450,000 last week. Economists polled by Thomson Reuters forecast they would rise to 460,000.

In recent weeks, reports that topped forecasts were enough to rally the market as investors' worries about the economy falling back into recession dissipated.

"We really don't have any economic trend in place other than stumbling economic growth," said Brett Gallagher, deputy chief investment officer at Artio Global Investors. "The reality is we're in for a lengthy slog of below-trend growth."

A separate report Thursday indicated prices at the wholesale level rose more than expected last month, but analysts say inflation isn't necessarily a short-term worry. The Producer Price Index, which measures prices on goods before they reach consumers, rose 0.4 percent in August because of rising energy costs. Economists were expecting a smaller increase.

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