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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 cutting bookings forecast

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Futures down: S&P 0.07%, Dow 0.19%, Nasdaq 0.02%

(Updated at 8:48 a.m. ET/1248 GMT)

By Sruthi Shankar and Shristi Achar A

May 9 (Reuters) - U.S. stock indexes were set for a

muted open 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.

The data followed last week's softer-than-expected payrolls

numbers that fueled bets that the Federal Reserve will cut

interest rates sometime this year.

"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.

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 Thursday's data.

The jobless claims data dragged down yields on 10-year

Treasury notes, the benchmark for global borrowing

costs, which had risen in the previous session and pressured

equities.

But the optimism was countered by some disappointing

earnings reports.

Chip designer Arm Holdings tumbled 6.7% in premarket

trading as its full-year revenue forecast came in below

expectations. Bigger rival Nvidia ( NVDA ) slipped marginally.

Warner Bros Discovery ( WBD ) slid almost 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 27% after the video-gaming platform

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

dialing back on spending amid an uncertain economic outlook and

elevated levels of inflation.

By 8:48 a.m. ET, S&P 500 e-minis were down 3.5

points, or 0.07%. Nasdaq 100 e-minis fell 3.25 points,

or 0.02%, while Dow e-minis dipped 74 points, or 0.19%.

Robinhood Markets ( HOOD ) gained 7% 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 8.2% 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.

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

Editing by Devika Syamnath and Shinjini Ganguli)