Stocks set to open mostly lower

NEW YORK (CNNMoney.com) -- U.S. stocks were set to open mostly lower Thursday, on the heels of the previous session's heavy losses, and following government reports showing an increase in jobless claims and manufacturer inflation.

At 8:53 a.m. ET, the Dow Jones industrial average and S&P 500 future were lower, while Nasdaq-100 futures were up slightly.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks fell sharply Wednesday after a weaker-than-expected retail sales report reignited economic worries. The Dow lost 2% while the S&P 500 and Nasdaq both shed about 3%.

"In the absence of good news today, we might see some profit taking," said Art Hogan, chief market strategist for Jefferies & Co.

Economy: The Labor Department released its weekly reading on jobless claims.

The government said that 637,000 people filed for first-time unemployment benefits in the week ended May 9. This was much higher than the economist forecast of 610,000, according to the Briefing.com consensus.

This was also higher than the prior week, ending on May 2, when jobless claims totaled 601,000.

The government also released its Producer Price Index, a measure of inflation in goods and services bought by manufacturers. The PPI rose 0.3% in April. Excluding food and energy, the PPI edged up 0.1%.

The PPI was expected to have risen 0.2% in April, compared to the prior month's decline of 1.2%, according to a consensus of economist forecasts from Briefing.com.

Earnings: Wal-Mart, the largest retailer in the world, reported diluted earnings per share of 77 cents for the first quarter of its fiscal year, slightly higher than the year-ago figure of 76 cents. The figure matched a consensus of analyst estimates compiled by Briefing.com.

But sales dipped slightly to $93.5 billion for the quarter, from $94 billion a year ago.

Wal-Mart's (WMT, Fortune 500) stock was practically unchanged in pre-market trading.

Companies: Several big banks have sued bond insurer MBIA (MBI) over its business split. The lawsuit alleges that the company acted illegally when it split the business in two and that the move hurt policyholders.

Sony (SNE) warned Thursday that it expects to post a loss for the fiscal year that began in April. The electronics retailer has been hit hard by falling sales and the stronger yen, which has made its exports less competitive.

World markets: Stocks in Asia retreated. Japan's Nikkei fell 2.6% and Hong Kong's Hang Seng lost 3%. European markets were mostly lower in midday trading.

Oil and money: The price of oil fell $1.07 a barrel to $56.95. The dollar rose against major international currencies, including the euro, the yen and the British pound.