US open: Stocks fall as Evans rate-hike comments worry investors

New York stocks were mostly lower in early trading on Thursday as investors digested positive jobless claims data and concerns about an imminent rate hike.

After an hour into the session, the Dow Jones Industrial Average was down 0.11%, the Nasdaq gained 0.03% while the S&P 500 slipped 0.15%.

Comments from Federal Reserve policymaker Charles Evans were being closely monitored by investors after he said that the central bank could lift interest rates at any meeting.

"We are going into each meeting from now on talking about what the policy rate should be and at the end of every meeting, it's possible that we'll decide to begin the renormalisation process," he said in an interview on CNBC.

Nevertheless, he reiterated his call for the Fed to wait until 2016 to tighten policy.

Analysts also said market sentiment was also dampened by renewed losses in European sovereign debt markets and the recent rally in oil futures and what that might mean for inflation in the Eurozone.

Jobless claims data impresses

In economic data, initial unemployment claims rose by 3,000 to 265,000 over the week ended on 2 May, according to the Department of Labour, less than the 278,000 expected by the market.

Continuing unemployment claims for the previous week ended 25 April, including those which have not been filed for the first time, slipped by 28,000 to a new 15-year low of 2.228m.

Labour-market data was under the spotlight ahead of the all-important US unemployment report due Friday which is expected to show a 230,000 increase in non-farm payrolls last month, nearly double the 126,000 registered in March.

However, analyst Jesse Hurwitz from Barclays said: "The solid progress in labour market separations evidenced in this morning’s report, for both initial and continuing unemployment, supports our view that non-farm payroll growth should recover to 250k in tomorrow’s April employment report."

Whole Foods losing its flavour

Whole Foods Market tanked nearly 11% after leaving investors less than satisfied. Overnight, the company reported second-quarter sales of $3.65bn, up from $3.32bn in the same period of last year but short of the $3.71bn expected by analysts.

Stock in internet retailer Alibaba surged 7% after the company beat profit and revenues estimates for its fiscal fourth quarter.

Zynga also jumped 6% as the online game group beat profit forecasts in the first quarter and unveiled plans to cut 364 jobs, equal to 18% of its staff.