U.S. stock futures were lower on Thursday after new data on jobless claims showed that the job market is still in poor shape.

A surprise drop in U.S. retail sales sent equity investors rushing for the exits on Wednesday.

In today’s U.S. economic news, the number of workers filing new unemployment benefit claims climbed more than expected last week, driven higher by filings in car-industry states.

Initial claims for state jobless benefits increased 32,000 to 637,000 in the week ended May 9, the the U.S. Labor Department said in a weekly report Thursday.

Wall Street economists had expected a 10,000-claim increase to a level of 611,000.

Separately, U.S. producer prices climbed in April more than expected because of a jump in food costs, but core wholesale inflation rose only mildly as the recession robs companies of pricing power.

Here at home, the Canadian dollar opened at US85.01¢, down 0.03 of a cent from Wednesday’s close.

There are no major economic releases from Statistics Canada today.

In today’s earnings news, Cascades Inc. swung to a profit in the first quarter. The packaging and recycling company reported net earnings of $37 million, or 38¢ a share, compared to a net loss of $4 million in the first quarter of 2008.

Retail giant Wal-Mart Stores Inc. reported a flat first-quarter profit as revenue was hurt by the stronger dollar.

Wal-Mart said Thursday it earned US$3.02 billion, or 77¢ per share, for the period ended April 30. That was flat from a year earlier.

In commodities news, oil futures dropped 96¢ to US$57.06 a barrel, with the International Energy Agency cutting its world energy demand outlook.

Gold futures slipped US$2.60 to US$923.30 an ounce.

Overnight in Asia, the Hang Seng shed 3.1%. The Nikkei 225 dropped 2.6% in Tokyo.

In afternoon trading, the UK’s FTSE 100 declined 2.1%, Germany’s DAX index dropped 2.6%, and France’s CAC-40 slipped 2.4%.

On Wednesday, the S&P/TSX composite index sank 368.19 points, or 3.65%, to 9,709.51. It was the third straight loss for the benchmark index.

All 10 of the index’s main sectors were lower, with heavy losses in the energy and financial groups.

The junior S&P/TSX Venture composite index fell 24.74 points, or 2.29%, to 1,053.53.

In New York, U.S. stocks tumbled following the release of gloomy retail sales report. Sales at retailers fell for a second straight month in April.

The Dow Jones industrial average slumped 184.22 points, or 2.18%, to 8,284.89. It was the biggest point and%age drop for the Dow since April 20.

The S&P 500 lost 24.43 points, or 2.69%, to 883.92. The tech-heavy Nasdaq composite index gave up 51.73 points, or 3.01%, to 1,664.19.

IE