Stock futures fall modestly ahead of open

[March 11, 2010]  NEW YORK (AP) -- Stock futures fell modestly Thursday as the market remains stuck in a tight range. A lack of economic reports have kept a lid on big movements this week.

Overseas markets were mixed after China said its inflation rate jumped 2.7 percent in February from 1.5 percent in January. Rapid inflation could force China to raise interest rates. That, in turn, could slow one of the world's fastest-growing economies and put a damper on a global recovery.

Investors clamoring for fresh data to see if the U.S. economy is indeed strengthening could get what they want when the Labor Department releases a report on weekly jobless claims.

Economists predict workers seeking unemployment benefits for the first time likely fell last week for the second straight week. Economists polled by Thomson Reuters predict first-time jobless claims fell by 9,000 to a seasonally adjusted 460,000. The report is due out at 8:30 a.m. EST.

A drop would provide reassurance that job cuts are slowing, less than a week after the monthly jobs report showed employers cut fewer jobs in February than forecast.

High unemployment remains a major obstacle to a strong, sustained recovery. An increase in workers would likely translate into more consumer spending, which is the primary driver of economic activity in the country.

Stocks have barely budged since last week's monthly employment report. The Dow Jones industrial average is up just one point this week. A report Thursday that showed wholesale inventories fell, but sales rose in January was not enough to sway traders to jump into or pull out of the market.

Ahead of the opening bell, Dow Jones industrial average futures fell 18, or 0.2 percent, to 10,547. Standard & Poor's 500 index futures fell 3.40, or 0.3 percent, to 1,142.30, while Nasdaq 100 index futures fell 1.25, or 0.1 percent, to 1,917.50.

Corporate dealmaking continued Thursday. Oil company BP PLC will pay $7 billion to acquire exploration rights from Devon Energy Corp. BP will acquire rights to explore in Brazil, the U.S. Gulf of Mexico and Caspian Sea.

Increased mergers and acquisitions in recent weeks has been a positive sign that companies believe the economy is getting stronger.

Major indexes inched higher Wednesday in light trading volume. Light volume throughout the week indicates there isn't much conviction in trading right now. The Dow and S&P 500 have been hovering near 15-month highs, but investors haven't been in a rush to send those indexes any higher.

The report on inventories and sales wasn't strong enough to give the market new direction.

Meanwhile, bond prices dipped Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.74 percent from 3.73 percent late Wednesday.

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

Overseas, Japan's Nikkei stock average rose 1 percent. Britain's FTSE 100 fell 0.1 percent, Germany's DAX index rose less than 0.1 percent, and France's CAC-40 fell 0.3 percent.

[Associated Press; By STEPHEN BERNARD]

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