October 18, 2012-Stocks Look to Pullback After Higher US Jobless Data

After moving mostly higher over the course of the three previous sessions, stocks may give back some ground in early trading on Thursday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 9 points. Disappointing jobs data may weigh on the markets in early trading, with a report from the Labor Department showing that initial jobless claims rebounded by more than expected in the week ended October 13th. The report said jobless claims jumped to 388,000 from the previous week's revised figure of 342,000. Economists had been expecting jobless claims to show a more modest increase to 365,000 from the 339,000 originally reported for the previous week. The rebound from the four-year low set in the previous week was partly due to the normalization of distortions caused by seasonal adjustment challenges in California. While the report has generated some negative sentiment, a positive reaction to the latest economic data out of China is likely to help keep any selling pressure relatively subdued.