Stocks jittery after UK hikes rates

NEW YORK (CNNMoney.com) -- U.S. stocks were poised to open slightly lower Thursday, with futures turning around after the Bank of England raised interest rates in a surprise move.

At 7:30 a.m. ET, S&P and Nasdaq futures were lower and indicated an initial dip in the major indexes.

England's central bank raised interest rates a quarter percentage point to 5.25 percent, citing diminished spare capacity in the economy and rising inflation pressure.

The move hit the dollar, which fell against the euro but remained higher on the yen.

The Labor Department said 299,000 people filed initial unemployment claims last week, down from 325,000 the week prior and fewer than the 320,000 expected by economists polled by Briefing.com.

One analyst said given the market's recent focus on the economy, the report could be more closely watched than normal.

"There's been a lot of buzz on the corporate side of things, but the market continues to move sideways," said Art Hogan, chief market analyst at Jefferies & Co. "Do we have a hard or soft landing?" for the economy is the question. "I think the market continues to trade choppy."

Oil prices were down, although off their lows. U.S. light crude was 77 cents lower at $53.25 a barrel in electronic trading, having fallen a fresh 19-month low of $52.94 overnight.

In corporate news, Cisco Systems (Charts) said it is suing Apple over the use of the iPhone name. Cisco holds the trademark on what Apple is calling its new mobile phone.

Genentech (Charts) said its fourth-quarter earnings jumped 75 percent on strong sales of Lucentis, its new drug to treat blindness, and demand for its cancer drugs.

Viacom (Charts) said Gail Berman, the head of Paramount Pictures, resigned as part of an executive shakeup.

eBay (Charts) agreed to buy sports ticket reseller StubHub for $310 million in cash.

And Wal-Mart (Charts) said the number of workers opting into one of its healthcare plans rose 8 percent.

Asian markets ended mixed, with Tokyo's Nikkei index down 0.6 percent. European shares rallied in early trading. (Check world markets)

Treasury prices pulled back, with the 10-year note yield up to 4.72 percent from 4.68 percent late Wednesday.

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