US stocks markets traded lower overnight on signs that more Americans are starting to claim unemployment benefits, spelling bad news for the economic recovery.
"US equity markets are under some pressure in early action," said analysts at Charles Schwab & Co, "following an unexpected increase in weekly initial jobless claims."
The Dow Jones Industrial Average fell 27.79 points (0.25 per cent) to 10,653.64 by 12.15pm (AEST).
The tech-rich Nasdaq composite index was down 7.07 points (0.31 per cent) to 2296.50 while the broader S&P 500 index fell 3.47 points (0.31 per cent) at 1123.77.
New claims for US jobless benefits rose unexpectedly last week to the highest level since April, the government said, underscoring concerns unemployment could scuttle the economic recovery.
Initial claims climbed 4.1 per cent to 479,000 in the week to July 31, the Labor Department said, baffling most analysts who had expected claims to fall to 455,000.
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That was enough to erode positive sentiment garnered from Europe, concerns about Greece's debt woes ebbed and positive news from Germany - Europe's largest economy - where factory orders jumped 3.2 per cent.
Oil companies led the Dow's decline, with ExxonMobil and Chevron both losing over 0.80 per cent. Microsoft was trading down over one per cent.
The bond market rose. The yield on the 10-year US Treasury bond fell to 2.919 per cent from 2.950 per cent yesterday and that on the 30-year bond fell to 4.049 per cent from 4.051 per cent. Bond yields and prices move in opposite directions.
Shoppers are choosy in shaky economyUS shares down on weak data
