US STOCKS-Wall St set for lower open on economic woes

                                
 * Data on U.S. jobless, housing fuel worries over economy
                                
 * Apple could support after better-than-expected results
                                
 * S&P 500 futures off 1.2 pct, Dow futures off 1.1 pct,
Nasdaq futures off 0.1 pct
                                
 * For up-to-the-minute market news, click [STXNEWS/US]
 (Recasts with economic data)
                                
 By Leah Schnurr
                                
 NEW YORK, Jan 22 (Reuters) - Wall Street was set for a
lower open on Thursday due to concerns over a weak earnings
season while economic data showed further deterioration in the
labor and housing markets gripped by the year-long recession.
                                
 The number of workers filing new claims for jobless
benefits rose by more than expected last week, while housing
starts and permits fell to a record low in December, data
showed. For details, see [ID:nN22525475] [ID:nN21489514].
                                
 But the Nasdaq could see some support from Apple <AAPL.O>,
which announced quarterly profit that surpassed Wall Street's
expectations after the closing bell on Wednesday. Shares of the
iPod maker were up 8.1 percent at $89.50 in premarket trading.
                                
 Despite some bright spots such as Apple and International
Business Machines Corp <IBM.N>, the earnings season continues
to be weak with more companies warning about the year to come.
                                
 Among the morning's fresh batch of quarterly results, world
No. 1 defense contractor Lockheed Martin Corp <LMT.N> posted a
better-than-expected rise in profit but sharply cut its
full-year forecast, sending its stock down 2.5 percent at $78.
[ID:nN22520118].
                                
 "The market knows it's not going to be a good earnings
season," said Peter Cardillo, chief market economist at Avalon
Partners in New York.
                                
 "We've had one or two surprises, but basically so far the
earnings have been in line with negative expectations."
                                
 S&P 500 futures <SPc1> fell 6.70 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> were down
70 points and Nasdaq 100 <NDc1> futures were off 0.75 points.
                                
 Stocks had risen on Wednesday, rebounding from a two-month
low, after a surprisingly strong earnings report from IBM
fueled optimism that technology may fare better than other
sectors during the recession.
                                
 Technology shares are likely to stay in focus on Thursday
with quarterly earnings expected from Microsoft <MSFT.O> and
Google <GOOG.O> after the closing bell.
                                
 Overseas, top cellphone maker Nokia <NOK1V.HE> added to
worries over the impact of the economic slowdown on consumer
spending, warning market volumes would shrink 10 percent this
year. [ID:nLL462427].
                                
 Investors will also be watching for a vote by the U.S.
Senate Finance Committee on the nomination of Timothy Geithner
to be Treasury secretary expected later in the day.
                                
 Geithner faced tough questioning at his confirmation
hearing before the committee on Wednesday. Wall Street had
originally cheered Geithner's nomination but the choice has
since come under controversy over Geithner's failure to pay
some taxes.
                                
 "Geithner is expected to be approved as the Treasury
secretary and I think that will give the market a lift," said
Cardillo.
                                
 (Editing by Chizu Nomiyama)