LIVE MARKETS-US stocks lower as megacaps weigh

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US STOCKS LOWER AS MEGACAPS WEIGH

U.S. stocks are lower in the early stages of trading on Thursday, with megacaps Alphabet GOOGL.O, Microsoft MSFT.O, Amazon.com AMZN.O accounting for a significant share of downside pressure.

Alphabet is slumping more than 4% after it reported quarterly results that topped expectations, but said capital expenditure could as much as double this year as it continues to forge ahead in the race for AI dominance. The surge in AI spending has unnerved investors in recent weeks, who are concerned the spending may not result in commensurate profits.

MSFT is down more than 3%. Amazon shares are sliding nearly 5% ahead of its quarterly results due after the closing bell.

Investors were also grappling with a trio of reports that indicated weakness in the labor market, as a report from global outplacement firm Challenger, Gray & Christmas said layoffs announced by U.S. employers surged in January to their highest level for the month in 17 years.

A separate report from the Labor Department said weekly initial jobless claims jumped 22,000 to a seasonally adjusted 231,000, above the 212,000 estimate of economists polled by Reuters, although the number may have been lifted by snowstorms across much of the country.

Lastly, the Labor Department said in its Job Openings and Labor Turnover Survey, or JOLTS report, that job openings dropped to the lowest level in more than five years in December and data for the prior month was revised lower.

Below is your market snapshot:

(Chuck Mikolajczak)

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