U.S. stocks drop ahead of Jackson Hole; Dow Jones down 0.50%

Investing.com - U.S. stocks opened lower on Thursday, after the release of mixed U.S. data as investors remained cautious ahead of a highly anticipated speech by Federal Reserve Chairman Ben Bernanke on Friday.

During early U.S. trade, the Dow Jones Industrial Average dropped 0.50%, the S&P 500 index declined 0.51%, while the Nasdaq Composite index slipped 0.49%.

Markets were jittery ahead of Bernanke’s speech at a symposium in Jackson Hole, Wyoming, amid ongoing speculation over how close the Fed may be to implementing more economic stimulus measures.

Official data showed earlier that the number of people who filed for unemployment assistance in the U.S. last week held steady at 374,000, compared to expectations for a decline of 4,000.

A separate report showed that personal income in the U.S. rose by 0.3% in July, matching forecasts, after rising by a revised 0.3% in June. Personal spending rose 0.4%, in line with expectations after a flat reading in June.

The tech sector was active at the open, as shares in Apple dropped 0.70% after rival Samsung Electronics became the first handset maker to announce a smartphone using Microsoft's latest mobile software.

The surprise announcement came only days before the launch of Nokia's own version.

Also on the downside, Sears Holdings plummeted 5.70% as it was expected to lose its place in the S&P 500 index after the close of trading next Tuesday seeing as the stock’s public float has been below the 50% of the index requirement “for an extended period of time.”

Sears will be replaced by chemical maker LyondellBasell, whose shares surged 3.86%.

U.S. lenders added to losses, as shares in Bank of America dropped 0.62% and Goldman Sachs declined 0.60%, while JP Morgan and Citigroup retreated 0.51% and 0.47% respectively.

Reuters reported earlier that Citigroup agreed to pay USD590 million to pay a shareholder lawsuit accusing it of hiding tens of billions of dollars of toxic mortgage assets.

The agreement was said to be one of the largest settlements on record stemming from the global financial crisis.

Among earnings, Internet radio company Pandora skyrocketed 21.13% after it posted earnings that topped expectations and boosted its current-quarter revenue outlook.

Elsewhere, the Carlyle Group advanced 0.78% after saying it will acquire DuPont's performance coatings unit for USD4.9 billion and will also take on USD250 million of DuPont's unfunded pension liabilities.

Other stocks in focus included apparel store Zumiez, due to post results after the closing bell.

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 dropped 0.52%, France’s CAC 40 fell 0.29%, Germany's DAX retreated 0.78%, while Britain's FTSE 100 edged 0.13% lower.

During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.19%, while Japan’s Nikkei 225 Index slumped 0.95%.

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Also Thursday, Italy saw borrowing costs ease at an auction of five and 10-year bonds earlier, reflecting expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets ahead of its upcoming meeting on September 6.