Stocks Opened Lower on Worries about Fed Rate Hike

U.S. stocks opened lower on Thursday as investors worried that a batch of strong U.S. data could encourage Federal Reserve Chairwoman Janet Yellen to raise interest rates sooner than previously expected. The Dow Jones Industrial Average lately slipped 12.53 points, or 0.07%, to 18,468.95. The S&P 500 declined 2.12 points, or 0.10%, to 2,173.32. The Nasdaq Composite gave up 4.61 points, or 0.09%, to 5,213.08.

The number of Americans who applied for unemployment benefits last week fell by 1,000 to 261,000 and remained near postrecession lows, indicating a healthy labor market in which few people are losing their jobs.

Orders for durable or long-lasting goods made in the U.S. surged 4.4% in July to mark the biggest gain since last fall, a sign that an extended decline in production may be over.The average of new jobless claims over the past month dropped by 1,250 to 264,000, the Labor Department said Thursday.

Sears Holdings Corp (SHLD) posted a quarterly net loss, and the company said it accepted additional debt financing of $300 million from billionaire Chief Executive Edward Lampert’s hedge fund. The company posted a net loss attributable to shareholders of $395 million, or $3.70 per share, in the quarter, compared with a profit of $208 million, or $1.84 per share, a year earlier.

Oil prices slipped on Thursday as the market focused on oversupply and fading hopes of a production freeze. Global crude oil benchmark Brent was down 15 cents at $48.90 a barrel by 1043 GMT, having closed down 1.8 percent on Wednesday. U.S. light crude oil was down 5 cents at $46.72 a barrel, after dropping 2.8 percent on Wednesday.