NEW YORK - US STOCKS opened lower on Thursday after government data showed worse than expected jobless data and a modestly revised first quarter gross domestic product rate.

The Dow Jones Industrial Average fell 5.90 points (0.07 per cent) to 8,293.96 in opening trades after closing in the red for the fourth straight session a day earlier.

The tech-dominant Nasdaq dipped 2.74 points (0.15 per cent) to 1,789.60 while the broad-market Standard & Poor's 500 lost 0.78 points (0.09 per cent) to 900.17.

Market action began after the government reported that the US economy contracted at a 5.5 per cent pace in the first quarter, not as bad as the previous estimate of a 5.7 per cent drop.

Government data also showed new claims for US unemployment benefits climbing for the second consecutive week last week.

Investors were worried 'the economy is lacking fuel to continue the recent recovery, exacerbated by an unexpected rise in weekly initial jobless claims', analysts at Charles Schwab & Co said in a note to clients.

The GDP revision reflected a slightly better reading on consumer spending and lower imports, partly offset by declines in inventory and construction.

Although the figure was slightly better than the unrevised 5.7 per cent drop expected by analysts, economists point out that the reading of January-March activity offers few clues on current conditions.

Initial claims for unemployment insurance benefits rose to a seasonally adjusted 627,000 in the week ended June 20 from an upwardly revised 612,000 claims in the prior week, the Labour Department said.

Most analysts had expected new claims of 600,000.

'The prevailing message remains that the labor market is weak and that's not a great portent for consumer spending or the housing recovery,' said Mr Patrick O'Hare of Briefing.com. -- AFP