NEW YORK (CNN/Money) - Signs of stabilizing consumer prices and layoffs may be enough to soothe investors Thursday after worries about higher interest rates ignited a steep selloff.

Early indications point to modest opening gains for the major stock indexes after Wednesday's big losses, which came after a Federal Reserve annoucement signaled that borrowing costs could go higher this year.

The latest economic data from the government showed that the Consumer Price index, an inflation gauge, rose 0.2 percent, matching both expecations and January's gain. Stripping out food and energy, prices rose 0.3 percent, slightly above forecasts.

Separately, the number of Americans filing for first-time jobless claims fell by 12,000 to 371,000 last week, remaining below the 400,000 benchmark signaling economic weakness as the heavy layoffs following the Sept. 11 terrorist attacks continued to ease.

The numbers did nothing to change forecasts for higher short-term interest rates from the Fed, said John Lonski, chief economist at Moody's Investors Service.

"We have to be braced for a gradual upturn in the federal funds rate," Lonski told CNNfn's Before Hours.

More data come later. Shortly after trading begins, the Conference Board comes in with its Index of Leading Economic Indicators for February. Economists forecast a 0.1 percent rise, down from the brisk 0.6 percent gain posted in January.

Around midday, one of the closely watched regional economic reports -- the survey conducted by the Federal Reserve Bank of Philadelphia -- is due. The forecast calls for an increase in the March manufacturing measure to 18 from 16 in the prior month.

The Dow Jones industrial average begins at 10,501.57, having dropped nearly 134 points in Wednesday's selloff. The Nasdaq composite index stands at 1,832.87 after losing 48 points, it steepest drop of the month. The Standard & Poor's 500 index starts at 1,151.85, following a dip of 18 points.

Asian stocks closed lower Thursday, although Tokyo was closed to celebrate the start of spring. European stocks were mixed at midday.

Treasury prices edged lower, with the 10-year note yield rising to 5.43 percent from 5.40 percent late Wednesday. Thedollar rose against the yen and euro. Brent oil futures fell 2 cents to $24.64 a barrel in London.

Home Depot (HD: Research, Estimates) said it doubled its presence in Mexico after buying a four-store Mexican home improvement chain, Del Norte, for an undisclosed amount. Home Depot shares rose 14 cents to $49.64, one of just three Dow stocks to gain Wednesday.

Elan (ELN: Research, Estimates) said its has been granted Food and Drug Administration approval to market its pain treatment Avinza. The Irish drugmaker's shares rose 50 cents to $14.50 in before-hours trading Thursday.

General Electric's (GE: Research, Estimates) broadcast unit, NBC, has decided to drop its plans to accept hard liquor advertising three months after saying it would. General Electric fell $1.10 to $38.80 Wednesday, pressured after an influential bond fund manager said he wouldn't buy GE's short-term debt.

Concerned about weak advertising, Lehman Brothers cuts first-quarter sales targets for AOL Time Warner (AOL: Research, Estimates). Shares of AOL, which runs CNN//Money, fell 40 cents to $24.80 in before-hours trading Thursday.

Shares of eye-care products maker Alcon, which raised $2.3 billion late Wednesday, are set to begin trading Thursday under the ticker symbol "ACL."

Chipmaker Micron Technologies (MU: Research, Estimates) and handheld communication device maker Palm (PALM: Research, Estimates) are among the companies whose results are due after Thursday's close.

Both Nokia (NOK: Research, Estimates), the mobile phone maker, and Applied Materials (AMAT: Research, Estimates), the chip equipment maker, update investors on their business outlook later in the day.