By Steve Goldstein, MarketWatch LONDON (MarketWatch) - U.S. stock futures dropped Thursday as job cuts from AT&T and DuPont and disappointing retail sales underlined the fragile economy. S&P 500 futures slipped 13.9 points to 854.60 and Nasdaq 100 futures dropped 18 points to 1,138.00. Dow industrial futures slipped 127 points. U.S. stocks closed with gains on Wednesday in another volatile session, with the Dow industrials up 172 points, the Nasdaq Composite rising 42 points and the S&P 500 ending 21 points higher. The market was helped by a report in The Wall Street Journal that the Treasury is considering a plan to help lower mortgage rates, possibly to as low as 4.5%. Executives at General Motors and Chrysler will be back in Washington to plead for aid in what's seen as crucial hearing. Retailers reported another month of slumping sales, outside Wal-Mart Stores which topped expectations. The Bank of England cut interest rates by a percentage point to 2%, the lowest level since 1939. The European Central Bank slashed rates by three-quarters of a point. Ahead of Friday's release of nonfarm payrolls, jobless claims fell last week but remained about the half-million mark. Meanwhile, major job cuts were announced by AT&T , which cut 12,000 jobs, and DuPont , which is cutting 2,500 positions and letting 4,000 contractors go. DuPont, which also warned of a loss, dropped 7% in preopen trade. AT&T fell 2.7%. Drug giant Merck traded lower after predicting 2009 adjusted earnings between $3.15 and $3.30 a share, against analyst estimates of $3.53 a share. Adobe Systems dropped 7% in pre-open trade after it announced below-forecast quarterly revenue and said current quarter revenue would also fall short of estimates. Nokia made its second warning in a month on mobile-phone sales, though the stock traded 4% higher in pre-open trade. Philips Electronics said it wouldn't meet its 2010 goal of doubling operating profit. Credit Suisse announced it was making 5,300 job cuts after posting a loss of around $2.5 billion for the first two months of the fourth quarter. Chevy Chase Bank is going to be purchased by Capital One Financial for $520 million. Citigroup was previously reported to be a suitor for the Maryland bank. Separately, Citi's top executives, as well as senior adviser Robert Rubin, are ready to forgo their bonuses this year, according to a Financial Times report. The dollar slipped vs. the Japanese yen, and oil futures fell 95 cents to $45.84 a barrel. The Nikkei 225 ended 1% lower in Tokyo while the FTSE 100 fell 1.3% in London.

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