Stocks Opened Lower after Jobless Claims

U.S. stocks opened lower on Thursday after data showed weekly U.S. jobless claims held steady at levels consistent with sustained labor market strength that could encourage the Federal Reserve to raise interest rates next month. The Dow Jones Industrial Average lately dropped 149.39 points, or 0.84%, to 17,552.83. The S&P 500 fell 12.46 points, or 0.60%, to 2,062.54. The Nasdaq Composite was down 22.36 points, or 0.44%, to 5,044.66.

New U.S. applications for unemployment benefits last week held steady at levels consistent with sustained labor market strength that could encourage the Federal Reserve to raise interest rates next month. Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 276,000 for the week ended Nov. 7, the Labor Department said on Thursday.

“Prudence alone” suggests the Federal Reserve should be edging up interest rates and shrinking its balance sheet back towards more “normal settings,” said St. Louis Fed President James Bullard on Thursday

OPEC said its oil output fell in October and forecast supply from rival producers next year would decline for the first time since 2007 as low prices prompt investment cuts, reducing a global supply glut.

Kohl’s Corp.(KSS), the department store chain, beat profit and sales estimates for the third quarter. The company said it had net income of $120 million, or 63 cents a share, in the quarter, down from $142 million, or 70 cents a share, in the year-earlier period.

Siemens AG reported a worse-than-expected 33% drop in fourth-quarter net profit, but the German industrial giant forecast sales and earnings growth in the quarters ahead as it plans to return more cash to shareholders. Siemens said on Thursday that net profit fell to 959 million euros ($1.03 billion) in the three months to end-September from EUR1.45 billion during the same period last year.