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Weekly jobless claims rise more than expected

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Airbnb ( ABNB ) falls on weak Q2 revenue forecast

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Roblox ( RBLX ) slumps after bookings forecast cut

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Indexes: Dow off 0.06%, S&P up 0.01%, Nasdaq up 0.02%

(Updated at 09:37 a.m. ET/ 1337 GMT)

By Sruthi Shankar and Shristi Achar A

May 9 (Reuters) - U.S. stock indexes were muted on

Thursday as a slate of downbeat earnings offset the impact of

data that showed U.S. weekly jobless claims rose more than

expected, indicating softening labor market conditions.

Initial claims for state unemployment benefits increased

22,000 to a seasonally adjusted 231,000 for the week ended May

4, the Labor Department said. Economists polled by Reuters had

forecast 215,000 claims in the latest week.

"Whenever we have an employment number that is weaker and it

doesn't meet our expectations, ironically, that bolsters the

markets because the data was in favor of a rate cut rather than

a rate hike," said Peter Andersen, founder of Andersen Capital

Management.

Last week, softer-than-expected payrolls numbers had fueled

bets that the Federal Reserve will cut interest rates sometime

this year.

Money market traders are pricing in U.S. rate cuts worth 47

basis points (bps) by the end of 2024, according to LSEG's rate

probabilities app, up from 44 bps before the latest jobless

claims data.

The data also dragged down yields on 10-year Treasury notes

, the benchmark for global borrowing costs, which had

risen in the previous session and pressured equities.

This boosted rate-sensitive real estate index that

outperformed the S&P 500 sectors. A 12.8% rise in data center

operator Equinix ( EQIX ) after its first-quarter results also

added to gains in the index.

But the cheer was limited as some companies reported

disappointing earnings.

Chip designer Arm Holdings fell 5.1% as its

full-year revenue forecast came in below expectations. Bigger

rival Nvidia ( NVDA ) slipped marginally.

Warner Bros Discovery ( WBD ) slid 1.3% after it reported a

larger-than-expected quarterly loss, as its cable TV unit

reported a slump in ad sales and the studio segment struggled

due to Hollywood strikes and poor sales of "Suicide Squad"

videogame.

Roblox ( RBLX ) slumped 21.5% after the video-gaming

platform cut its annual bookings forecast, in a sign that people

were dialing back spending amid an uncertain economic outlook

and elevated levels of inflation.

At 09:37 a.m ET., the Dow Jones Industrial Average

fell 23.23 points, or 0.06%, to 39,033.16, the S&P 500

gained 0.72 points, or 0.01%, to 5,188.01 and the Nasdaq

Composite gained 3.76 points, or 0.02%, to 16,306.51.

Robinhood Markets ( HOOD ) gained 5.4% after the online

brokerage beat estimates for first-quarter profit, thanks to

robust crypto trading volumes and rate hikes that boosted its

net interest revenue.

Airbnb ( ABNB ) slid 6.7% after the vacation rental company

forecast second-quarter revenue below market expectations,

stoking fears of slowing growth.

Investors will focus on San Francisco Fed President Mary

Daly's speech later in the day for clues on U.S. rate path.

Boston Fed President Susan Collins on Wednesday expressed

confidence that the current setting of monetary policy will slow

the economy in a way she believes will be necessary to get

inflation back to the Fed's 2% target.

Advancing issues outnumbered decliners by a 1.73-to-1 ratio

on the NYSE and by a 1.14-to-1 ratio on the Nasdaq.

The S&P 500 posted 14 new 52-week highs and 2 new lows while

the Nasdaq recorded 50 new highs and 35 new lows.

(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru;

Editing by Devika Syamnath and Shinjini Ganguli)