Stock futures mixed even as jobless claims fall and JPMorgan earnings beat estimates

Stock futures mixed despite drop in jobless claims

NEW YORK — Stock futures were trading in a narrow range Thursday as an unexpected drop in new jobless claims and a strong earnings report from JPMorgan Chase & Co. was tempered by concern that a top lender to small businesses could collapse.

The Labor Department said new claims for unemployment insurance plunged last week by 47,000 to 522,000, the lowest level since early January. Economists polled by Thomson Reuters predicted an increase to 575,000.

“Today’s (unemployment) data was skewed,” said Eric Thorne, an investment adviser at Bryn Mawr Trust Co. “The jobs number is likely to be shrugged off by the market.”

Thorne said the weekly figure was not necessarily indicative of the overall economy because of the timing of automobile plant shutdowns. Plant closings can heavily sway week-to-week jobless claims, he said.

The market had been surging throughout the week on upbeat earnings reports and forecasts, restarting a rally that stalled last month. The positive reports added to beliefs the economy was in better shape than previously thought. Overseas markets were higher.

Ahead of the opening bell, Dow Jones industrial average futures rose 18, or 0.2 percent, to 8,561. Standard & Poor’s 500 index futures fell 0.20, or 0.02 percent, to 927.00, while Nasdaq 100 index futures fell 4.25, or 0.3 percent, to 1,493.00.

After three days of gains, caution though has returned as small and midsize business lender CIT Group Inc. said negotiations with regulators about a possible rescue broke off after days of talks. That raised expectations that the New York-based financial firm could file for bankruptcy protection.

CIT’s fate eased some of the excitement over upbeat earnings reports and outlooks from companies like JPMorgan and chipmaker Intel Corp.

JPMorgan said Thursday it generated record revenue, spurred on by strong investment banking operations. Its results come two days after earnings at another banking giant, Goldman Sachs Group Inc., also topped expectations.

The strong earnings from the banks has provided fuel to beliefs the economy is rebounding. The results also show that many of the nation’s biggest banks have quickly recovered from the collapse of credit markets last fall that led to the failure of Lehman Brothers and near collapse of American International Group Inc.

Nokia Corp., the world’s largest cell phone maker, said its second-quarter profit tumbled 66 percent and it scrapped targets to increase market share this year adding to the cautious tone.

Thursday brings more earnings reports that could provide additional signs into how the economy is faring. Internet powerhouse Google Inc. and computer maker International Business Machines Corp. both report earnings after the market closes.

The market soared Wednesday as investors believed better-than-expected earnings reports from companies like chipmaker Intel showed the economy might be in better shape than thought.

All the major indexes rose about 3 percent, and the Dow jumped 257 points for its biggest one-day gain in nearly four months.

Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.58 percent from 3.62 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.18 percent from 0.17 percent late Wednesday.

The dollar mostly rose against other major currencies, while gold prices fell.

Overseas, Japan’s Nikkei stock average rose 0.8 percent. In afternoon trading, Britain’s FTSE 100 rose 0.6 percent, Germany’s DAX index rose 1.2 percent, and France’s CAC-40 gained 1.3 percent.