Stocks opened lower Thursday after unemployment and housing data came in worse than expected and Microsoft earnings missed estimates. The software giant also said it would cut 5,000 jobs.
"Unemployment numbers are bad, and might get a little worse," said Roy Williams, chief executive of Prestige Wealth Management Group. "Everyone is in a defensive mode right now."
New data from the Commerce Department showed the housing market continued to weaken in December.
The economic news follows a wild two days in the markets. The Dow Jones industrial average jumped 3.5% Wednesday on a rally in the battered banking industry, stronger-than-expected results from IBM (IBM) and hopes of swift action in Washington to help the economy. Those gains came just a day after the Dow tumbled 4% on worries governments would further intervene to help struggling banks.
While Microsoft showed weakness, computer and electronic gadget maker Apple (AAPL) said its fiscal first-quarter profit increased 2%, beating analysts' expectations. Despite evidence showing consumers are cutting down on spending, Apple's quarterly sales also bested analysts' projections.
Elsewhere, oil prices fell 53 cents to $43.05 a barrel in premarket electronic trading on the New York Mercantile Exchange.
Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.52% from 2.55% late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, was flat at 0.12% compared with late Wednesday.
The dollar mostly rose against other major currencies, while gold prices fell slightly.
Overseas, Japan's Nikkei stock average rose 1.9%. In afternoon trading, Britain's FTSE 100 was up 0.59%, Germany's DAX index rose 0.24%, and France's CAC-40 rose 0.3%.
