Wall Street's Opening Rise Loses Steam, Stocks Lower

NEW YORK (MarketWatch) -- U.S. stocks on Thursday turned lower after a modest rise in jobless claims and before data on factory orders, with the market focused on Friday's employment report, viewed as key in Federal Reserve interest-rate moves ahead.

An hour ahead of the opening bell, the Labor Department reported first-time filings for state unemployment benefits climbed by 16,000 to 317,000 in the week ending Sept. 29.

"Though claims headed higher, they are still in a lean range and reflect a healthy job market, still inconsistent with the 4,000 drop in September nonfarm payrolls," said analysts at Action Economics.

The Dow Jones Industrial Average fell 1.3 points to 1,3966.3, with 19 of its 30 components trading higher.

The S&P 500 fell 0.32 points 1,539.27 and the Nasdaq Composite shed 8.97 points to 2,720.46.

On the New York Stock Exchange, 117 million shares were exchanged, with advancing stocks slightly behind decliners.

On the Nasdaq, 206 million shares traded hands, and declining stocks just ahead of those advancing.

Upcoming data include the 10 a.m. Eastern release of factory orders, with economists polled by MarketWatch looking for a 2.6% drop in August after a 3.7% rise the previous month.

Active issues

Shares of NutriSystems Inc. dropped nearly 35% after the fitness products company lowered its third-quarter forecast.

Mariott International Inc. reported third-quarter net income dipped 7% to $131 million, or 33 cents a share, with adjusted earnings of 31 cents a share just ahead of the 30-cent consensus.

Other markets

On the New York Mercantile Exchange, crude oil prices were lower, with the November contract dipping 75 cents at $79.19 a barrel. .

Gold futures for December delivery fell $6.90 to $728.80.

Treasury prices edged higher, with the 10-year note recently rising 2//32 to 101 17/32, its yield rising to 4.557%.

By Kate Gibson