US STOCKS-Wall St set to fall on jobs data, euro zone woes

* Cisco results, outlook exceed view, shares up

* Jobless claims rise unexpectedly in latest week

* European debt worries rattle markets

* Futures down: Dow 78 pts; S&P 11.4 pts; Nasdaq 13.25 pts

* For up-to-the-minute market news, click [STXNEWS/US]
(Updates with jobs data, changes quote)

By Rodrigo Campos

NEW YORK, Feb 4 (BestGrowthStock) – Wall Street was set to drop
nearly 1 percent at the open on Thursday after new applications
for jobless insurance rose unexpectedly, adding to worries over
sovereign debt in some euro zone countries that kept investors
away from risky investments, including equities.

Initial claims for state unemployment benefits unexpectedly
increased by 8,000 to a seasonally adjusted 480,000 in the week
ended Jan. 30, pointing to stubborn weakness in the labor
market even as the economy continues to grow. For details, see

The data “suggests any improvement in employment will be
slow,” said Subodh Kumar, chief investment strategist at Subodh
Kumar & Associates in Toronto. “I think that’s the reason the
(stock) markets haven’t been moving higher.”

In a good sign for the technology sector, shares of Cisco
Systems Inc (CSCO.O: ) rose 2 percent to $23.53 in premarket
trading after the company said quarterly profit and revenues
jumped, easily topping expectations and forecast revenues far
above the average view. For details, see [ID:nN0395898]

European stocks followed Asian markets lower on concerns
that Greece’s fiscal problems would spread to other highly
indebted euro zone countries like Portugal and Spain.[ID:nEUROPEAND].

“We’re seeing some evidence that certain countries are
really having difficulties. A year or nine months after the
recession, and they’re still struggling with these structural
imbalances,” said Steve Goldman, market strategist at Weeden &
Co in Greenwich, Connecticut.

S&P 500 futures (SPc1: ) dropped 11.4 points and were below
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures (DJc1: ) fell 78
points, and Nasdaq 100 futures (NDc1: ) lost 13.25 points.

Separate government data showed U.S. non-farm productivity
rose faster than expected, as employers ramped up output at the
quickest pace in six years.

January sales at top U.S. retailers moved into positive
territory after last year’s decline, as many chains avoided
drastic clearance sales and shoppers redeemed holiday gift
cards. [ID:nN04173396]

The Commerce Department will report December factory orders
at 10 a.m. EST (1500 GMT). Economists expect a rise of 0.5
percent, compared with a 0.6 percent increase in the prior


(Additional reporting by Ryan Vlastelica and Edward Krudy;
editing by Jeffrey Benkoe)

US STOCKS-Wall St set to fall on jobs data, euro zone woes