Worrying economic data dragged US stocks lower on Thursday morning, wiping out what could have been a stellar rally.

Futures for the Dow Jones Industrial Average had been up over 100 points an hour before the market opened after results from Wal-Mart had bolstered sentiment following an unexpected return to growth in France and Germany. But they struggled to make significant headway after the open following the news that retail sales unexpectedly fell while the number of people claiming jobless figures for the first time last week rose.