The Labor department releases claims for jobless benefits for the week ended September 22 at 1230 GMT. Economists forecast 378,000 new filings, just down from 382,000 in the prior week.

The final estimate of second product will be released at the same time. Economists expect an quarter gross domestic increase of 1.7 percent, unchanged from the preliminary figure.

On the earnings front, focus will be on Nike (NKE.N). The world's biggest sportswear maker faces questions about demand due to economic pressures in Europe and the likelihood of continued weakness in China. Other companies reporting results include Accenture (ACN.N) and Micron Technology (MU.O).

Among other data, the Commerce department releases August durable goods orders. Economists expect a 5.0 percent drop compared with a 4.1 percent rise in July.

It also releases revised August building permits data. The first report gave a figure of 803,000.

The Federal Reserve Bank of Chicago's Midwest Manufacturing Index for August is due at 1230 GMT. The index read 95.6 in July.

The National Association of Realtors issues Pending Home Sales for August at 1400 GMT. Economists expect an unchanged reading, compared with a 2.4 percent rise in July.

Spain will announce a series of economic reforms and a tight 2013 budget on Thursday, aiming to avoid the political humiliation of having Brussels impose conditions on a request for an international bailout.

European shares .FTEU3 rose, recovering some of their poise following sharp falls the previous session, bolstered by a strong rally in China.

Traders said China's central bank fed a net 365 billion yuan ($57.9 billion) into money markets this week, the largest weekly injection in history.

The S&P 500 fell for a fifth straight trading day on Wednesday as protests in Spain and Greece over austerity measures raised fresh concerns over Europe's ability to get its debt crisis under control.

The Dow Jones industrial average .DJI closed down 44.04 points, or 0.33 percent, at 13,413.51. The Standard & Poor's 500 Index .SPX was down 8.27 points, or 0.57 percent, at 1,433.32. The Nasdaq Composite Index .IXIC was down 24.03 points, or 0.77 percent, at 3,093.70.

(Reporting by Atul Prakash; Editing by John Stonestreet)

• A Permanent Economic Emergency