(REUTERS) -- Stock index futures pared losses on Thursday after data showed initial jobless claims fell to their lowest level in nearly four years last week, indicating the domestic labor market is improving.

S&P 500 futures fell 5.3 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures lost 45 points and Nasdaq 100 futures dipped 5.5 points.

(Reporting By Chuck Mikolajczak; Editing by Theodore d'Afflisio)