Stocks set for lower open as oil hovers at $100

NEW YORK (CNNMoney) -- U.S. stocks were set to fall at the open, as crude oil prices hover at $100 a barrel and investors continue to keep a wary eye on ongoing political tensions in Libya.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were lower ahead of the opening bell. Futures measure current index values against perceived future performance.

Mark McCormick, analyst for Brown Brothers Harriman, said the spike in oil prices has hurt investors' appetite for risk. He said they are profit-taking after a strong couple of months on Wall Street, in the face of concerns that a "larger, systemic problem" could be haunting oil supply in the near future.

"Higher oil prices generally act like a de facto tax against consumers," McCormick said. "This supply side shock could be a bit nerve wracking for the outlook of the larger economy."

He said that Wall Street has arrived at a "pivot point," where investors are wondering which direction markets will change over the next few months.

Stocks declined for a second straight session Wednesday, as oil prices surged to briefly cross the $100 per barrel mark amid mounting turmoil in the North African country -- the first exporting nation to be affected by the unrest sweeping across the Arab world.

The Dow Jones industrial average (INDU) fell 107 points, or 0.9%, a day after the blue-chip index plunged nearly 180 points. That was the first back-to-back triple-digit drop for the index since June.

Economy: Weekly initial jobless claims came in lower than expected. The number of Americans filing for unemployment benefits for the week ending Feb. 19 dropped by 22,000, to 391,000. Economists surveyed by Briefing.com expected 410,000 claims.

The Census Department's report on durable goods orders matched expectations. The government reported that orders rose 2.7% in January, up from a revised 2.5% in December.

The Commerce Department issues its new home sales report at 10 a.m. ET, which will be followed by a report on crude oil inventories.

Companies: General Motors Co. (GM) reported an annual profit of $4.7 billion in 2010 on Thursday morning. It's the automaker's first annual profit since 2004.

Before the bell, Target (TGT, Fortune 500) reported that its quarterly earnings jumped more than 10%. The stock slipped slightly in premarket trading.

Earnings from department store Kohl's (KSS, Fortune 500) are also due before the opening bell.

American International Group (AIG, Fortune 500) will report after the closing bell, and is expected to post a massive loss.

World markets: European stocks fell in mid-day trading. Britain's FTSE 100 and France's CAC 40 both slipped about 0.3%, and the DAX in Germany tumbled 1.2%.

Asian markets ended the session mixed. The Shanghai Composite rose 0.6%, while the Hang Seng in Hong Kong dipped 1.3% and Japan's Nikkei fell 1.2%.

Currencies and commodities: The dollar was flat against the euro and slipped versus the Japanese yen, but gained slightly against the British pound.

Oil for April delivery gained $2.73 to $100.83 per barrel, dropping from the earlier prices of more than $101 a barrel.

Gold futures for April delivery rose $3.80 to $1,417.80 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 3.44% from 3.45% late Wednesday.