US open: Stocks decline as oil prices edge lower

US stocks were under pressure on Thursday as oil prices tumbled and as US economic data came in mixed.

At 1456 GMT, the Dow Jones Industrial Average fell 0.36%, the S&P 500 slid 0.41% and the Nasdaq dropped 0.12%.

Oil prices dropped after a report from the US Department of Energy showed crude stockpiles rose by 9.4m barrels in the previous week – a much larger increase than the 2.5 million barrels analysts had expected.

West Texas Intermediate crude slipped 2.7% to $38.72 per barrel and Brent dipped 1.9% to $39.68 per barrel at 1502 GMT.

In economic data, the Commerce Department said US durable goods orders fell 2.8% on the previous month, slightly better than the consensus estimate for a 3% decrease and down from the revised increase of 4.2% the month before.

Markit’s purchasing managers’ index on US manufacturing rose to 51.4 in March from 51.3 in February, missing expectations for a reading of 51.5 but above the 50 level that separates an expansion from a contraction.

The Labor Department revealed US initial jobless claims rose by 6,000 to 265,000, versus economists’ expectations for an increase to 268,000.

St Louis Federal Reserve President James Bullard said on Thursday another US interest rate “may not be far off” as the labour market had improved since December. Bullard, who voted to support the Fed’s decision in March to keep interest rates unchanged, said: "As it turns out, the decision to pause seems to have put more weight on the global and U.S. growth downgrade," he said in prepared remarks.”

The dollar pushed higher following the comments as market participants readjusted their rate-hike expectations.

At 1508 GMT the dollar rose 0.19% versus the euro and increased 0.20% but fell 0.08% against the pound.

In corporate news, Yahoo’s shares declined following a report that hedge fund Starboard Value LP was looking to remove the entire board of the company.

Signet Jewelers gained after reporting a 19% increase in quarterly profit that surpassed expectations.

Athletic apparel retailer Finish Line Inc. slumped despite posting fourth quarter profit and sales that beat estimates.