Weekly unemployment claims rose to 429,000 last week, much higher than economists expected and the largest rise in four weeks. Economists had projected the number of people making applying for benefits would be 415,000.
Applications have stayed above 400,000 for more than two months, another sign that hiring has weakened from earlier this year.
Stock futures dropped immediately after the report was released. Ahead of the opening bell, Dow Jones industrial average futures are down 97 points, or 0.8 percent, at 11,926. S&P 500 futures are down 13 points, or 1 percent, at 1,267. Nasdaq 100 futures are down 18 points, or 0.8 percent, at 2,210.
All three indexes closed lower Wednesday after Federal Reserve Chairman Ben Bernanke said problems plaguing the economy may last longer than previously thought. The Fed also lowered its forecast for U.S. economic growth this year. The Fed said it now expects the economy to grow between 2.7 percent and 2.9 percent this year, down from its previous estimate of slightly more than 3 percent.
In pre-market trading, Bed Bath & Beyond gained 2 percent after the home furnishings retailer posted a 31 percent jump in quarterly profits. The company also lifted its earnings forecast for the rest of the year.
ConAgra Foods Inc. fell 3 percent. The food company revised down its earnings estimate for the current quarter.
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