US open: Stocks decline after worse-than-expected data

US stocks declined as investors weighed a worse-than-expected data on weekly jobless claims, durable goods orders and factory orders.

The Dow Jones Industrial Average fell 0.35%, the Nasdaq decreased 0.76% and the S&P 500 dropped 0.55% at 1445 GMT.

Initial jobless claims rose 8,000 to 285,000 in the week to 30 January, according to the Labor Department. Analysts had been expecting 278,000 claims.

“It's still too early to know for sure that the trend in claims has risen, but it is starting to look that way,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

“We thought the seasonals pointed to a modest dip this week, but claims rose instead.”

The data comes after the ADP’s private payrolls report showed US employers added more than expected jobs in January. The official monthly non-farm payrolls figures on Friday are forecast to reveal the US added 190,000 jobs in January.

The Federal Reserve is keeping a watch on the health of the labor market as it decides when to next raise interest rates.

Meanwhile, data revealed US factory orders fell 2.9% in December, more than the 2.8% drop expected by analysts and compared to the previous month’s 0.7% decline.

US durable goods orders also fell short of forecasts in December, declining 5% compared to a drop of 5.1% in November and analysts’ estimates for a 4.5% decrease.

On a more upbeat note for markets, oil prices rallied amid reports of potential talks between global oil producers to curb the supply glut. Venezuela's oil minister Eulogio del Pino told Iranian news agency Shana on Wednesday that six producing countries including OPEC members Iran and Iraq and non-members Russia and Oman, supported a meeting.

West Texas Intermediate crude rose 2.1% to $32.98 per barrel and Brent increased 1.2% to $35.47 per barrel at 1516 GMT.

The dollar was flat against the pound, down 0.82% against the euro and dropped 0.70% against the yen.

In company news, shares in GoPro plunged after the company posted a fourth quarter loss and gave a forecast that fell short of expectations.

Yahoo advanced after the company was upgraded to buy from neutral/high risk at Citi on the potential for a buyout.