Bloomberg News

U.S. Stock Futures Extend Losses as Jobless Claims Top Forecasts

June 23, 2011

June 23 (Bloomberg) -- U.S. stock futures extended losses as jobless claims climbed more than economists forecast.

The Standard & Poor’s 500 futures dropped 0.9 percent to 1,268.10 at 8:33 a.m. in New York, after falling as much as 0.8 percent earlier. Dow Jones Industrial Average futures lost 81 points, or 0.7 percent, to 11,941.

Applications for jobless benefits increased 9,000 in the week ended June 18 to 429,000, Labor Department figures showed. The level of claims exceeded the highest estimate in a Bloomberg News survey in which the median projection called for 415,000 filings. The number of people on benefit rolls was little changed, while those getting extended payments rose.

Stocks broke a four-day rally yesterday after the Federal Reserve reduced projections for U.S. economic growth and employment this year and next.

The S&P 500 has retreated 5.6 percent from this year’s high at the end of April amid weaker-than-estimated economic data and concern about Europe’s debt crisis. The benchmark gauge for U.S. equities has still risen 2.4 percent in 2011 on government stimulus measures and better-than-expected earnings.

A separate report today on U.S. home sales may provide further evidence of the strength of the recovery in the world’s largest economy.

To contact the editor responsible for this story: Jeff Sutherland at jsutherlan13@bloomberg.net


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