NEW YORK (AP) -- Wall Street headed for a lower opening Thursday as investors awaited reports on weekly jobless claims and fourth-quarter economic growth that they hope will provide clues about the direction of the economy.þþThe preliminary fourth-quarter report on gross domestic product, which measures the pace of economic growth or decline, and the latest tally on weekly jobless claims are both due at 8:30 a.m. Eastern time.þþFourth-quarter GDP is projected to show a rise of 0.7 percent, according to a median estimate of analysts polled by Thomson/IFR. That would be an improvement over the 0.6 percent gain seen in the third quarter of 2007, but would still be a weak pace of growth by recent historical standards.þþInvestors are concerned about the possibility that the economy is continuing to slow while prices rise, a condition known as stagflation. Those concerns have only heightened the importance of the GDP number.þþThe number of workers applying for first-time out-of-work claims is expected to increase by 1,000 to 350,000, according to Thomson/IFR. Weekly jobless claims are usually a volatile piece of data, but investors are tracking them carefully these days because there are worries that the labor market may be shrinking.þþThe futures contract for the Dow Jones industrial average fell 41 points, or 0.3 percent, to 12,652. Futures contracts for the Standard & Poor's 500 index lost 7.40 points, or 0.5 percent, to 1,373. and the Nasdaq 100 gave up 3.2 points, or 0.5 percent, to 1,797.þþOil futures were on the rise, last trading up 43 cents at $100.07 a barrel, after breaking through $102 for the first time Wednesday. Treasurys rose, pushing yields lower. The benchmark 10-year note's yield dropped to 3.80 percent from 3.85 percent.þþThe stock market this week has been barraged by a series of complex developments, including regulatory changes that should enable mortgage companies Fannie Mae and Freddie Mac to put badly needed liquidity into a famished housing sector. There were also indications that funding may be found for ailing bond insurers.þþThroughout the week the market has responded in a generally favorable way, allowing the Dow to post gains every day so far. Some investors even are hoping that on Friday the major indexes will manage to end February with gains, which would be a marked contrast to January's bloodletting.þþMuch will depend on whether hopeful or discouraging signs for the housing and bond insurance crises emerge on the two final trading sessions of the month.þþThe latest earnings reports underscored current economic challenges. Mortgage company Freddie Mac reported a quarterly loss of $2.45 billion. The result was wider than its year-earlier loss and steeper Wall Street had expected. Freddie Mac forecast further weakness in the housing market.þþSears Holdings Corp. warned early Thursday that profits will be squeezed by declining economic conditions as it posted a 47 percent decline in the final quarter of 2007.þþThere were losses in overseas trade. In Tokyo the Nikkei closed down 0.75 percent. In Europe, London's FTSE 100 fell 1.19 percent, Paris' CAC 40 lost 1.25 percent and Frankfurt's DAX dropped 1.13 percent. þþ
Source: NY Times
