US open: Stocks struggle for direction as import prices slump

US equities struggled for direction early on Thursday, as investors digested a batch of mixed economic data.

Shortly after 1500 BST, the Dow Jones Industrial Average was down 14 points to 16,239.04 while the S&P 500 and the Nasdaq were one and nine points higher respectively.

“Whenever US stocks look cheap, dealers swoop in with the confidence that the Fed is not going to increase interest rates next week,” said IG’s market analyst David Madden.

“The jump in Chinese inflation overnight has left US traders fairly sure that Beijing will not be devaluing its currency against the greenback in the near future.”

US import prices slump

According to figures released by the Labor Department, unemployment claims fell by 6,000 to 275,000 in the week to 5 September, in line with expectations and down from the two-month of 282,000 recorded the prior week.

“Consistently low readings for initial and continuing jobless claims suggest that the separations side of the labour market remains healthy, and we see little reason to expect a meaningful shift in labour market dynamics in the near term,” analysts at Barclays said in a note.

Meanwhile, US import prices slumped 1.8% month-on-month in August compared with a 0.9% decline in July and with analysts’ expectations for a 1.6% drop.

On a year-on-year basis, import prices tumbled 11.4%, the biggest fall since the 2009 crisis, from a 10.5% decline in the previous month and against analysts’ expectations of 11.1% drop.

In company news, Apple edged 0.98% as the tech giant recouped some of the losses it registered on Wednesday after unveiling a business-oriented iPad Pro, new iPhone models and a revamped Apple TV.

GoPro climbed 1.16% after plummeting 10.3% in the previous session, while Krispy Kreme Doughnuts edged 0.78% lower after it lowered its full-year guidance late on Wednesday.

Athletic apparel Lululemon Athletica plunged 9.77% after its second quarter results missed estimates

Sports-clothing retailer Zumiez Inc. and recruitment company Korn/Ferry International are on tap after the close.

Elsewhere, Asian equity markets closed mostly lower, as the volatility that has characterised China over the last couple of weeks spread to Japan, dragging European stocks lower as a result.

The dollar was flat against the euro and gained 0.39% against the yen but lost 0.47% against the pound, while gold futures climbed 0.76% to $1,110.40.

Oil prices moved in tight ranges, as West Texas Intermediate climbed 0.18% to $44.23 a barrel, while Brent lost 0.15% to $47.51 a barrel.