U.S. Stocks Suffer Opening Losses As Consumer Prices Jar Bulls

NEW YORK (MarketWatch) -- U.S. stocks opened lower Thursday after the government said a key measure of inflation had climbed more than anticipated in July, overshadowing earlier enthusiasm over Wal-Mart Stores Inc.'s quarterly profit and improved full-year outlook.

The Dow Jones Industrial Average fell 49.42 points to 11,483.54.

The S&P 500 declined 7.34 points to 1,278.49, while the technology-heavy Nasdaq Composite dropped 6.3 points to 2,422.32.

Ahead of the opening bell, U.S. stock index futures had tossed aside gains when the Labor Department said consumer prices jumped 0.8% last month, while the core price index, which excludes food and energy costs, climbed 0.3%.

In a separate report, the Labor Department reported first-time claims for jobless benefits fell by 10,000 last week to 450,000, but the four-week average rose to six-plus-year highs. .

Ahead of the economic data, stock futures had posted modest gains after Wal-Mart reported a 17% rise in second-quarter profit and upped its annual earnings goal. .

In early action on the New York Mercantile Exchange, crude-oil futures fell, with the contract for September delivery off 70 cents at $115.30 a barrel.

Shedding further light on the troubled housing industry, home foreclosures jumped 8% last month, with July possibly headed to go down as the worst month ever, according to data-tracking firm RealtyTrac. .

European shares also turned lower, with the pan-European Dow Jones Stoxx 600 index slipping 0.1% to 284.32. .

In Asia, the losing streak on the Shanghai Composite continued, with the Chinese index losing 0.4%.

U.S. stocks lost ground on Wednesday after a rebound in oil prices and a Merrill Lynch downgrade of leading banks.

By Kate Gibson