By Polya Lesova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks dropped on Thursday after
data showed a small decline in weekly jobless claims and a 2% drop
in U.S. productivity in the fourth quarter.
Extending losses, the Dow Jones Industrial Average (DJI)
declined 101 points, or 0.7%, to 13,885.
The S&P 500 (SPX) slipped 9.56 points, or 0.6%, to 1,502.48,
with energy and consumer discretionary the biggest decliners among
the index's 10 major industry groups.
The Dow ended Wednesday up 7.22 points, or 0.1%, at 13,986.52,
with some earlier jitters in the session over European
politics.
In Frankfurt, the European Central Bank left interest rates
unchanged. ECB President Mario Draghi said in a news conference
that the bank's accommodative monetary-policy stance should support
growth, but that economic-recovery risks are skewed to the
downside.
"We're seeing some wobbles in the euro zone, but that's not
necessarily a U.S. concern," said Stephen Pope, managing partner at
Spotlight Ideas. "U.S. corporations are showing robust growth and
they're cash-rich. They are extraordinarily good value for money.
It's a win-win for corporates and that's why you're getting a blend
of markets powering higher."
Despite the bumps in the markets this week, Pope said he doesn't
see any big panic button to press unless the Dow drops past the
13,500 level and the S&P 500 index drops to 1,445. "We've got
plenty of fat on the bone here; there will be retracement, days of
correction," he said. "The downside in these price movements are
buying opportunities."
In the U.S., retailers reported same-store sales for January,
with Macy's Inc. (M) reporting same-store-sales growth well above
expectations.
The Nasdaq Composite Index (RIXF) fell 24 points, or 0.8%, to
3,144.
Hedge-fund manager David Einhorn said he opposes a proposal by
technology giant Apple Inc. (AAPL) to eliminate preferred stock.
Einhorn also said that his fund is long Apple shares and that the
iPad maker is misvalued by the market. Shares of Apple rose
0.3%.
In other corporate news, Sprint Nextel Corp. (US-S) said its
fourth-quarter loss widened but its revenue exceeded forecasts.
Shares of the wireless carrier slipped 1%.
Shares of Akamai Technologies Inc. (AKAM) sank 16% after the
company's quarterly revenue growth disappointed investors.
Green Mountain Coffee Roasters Inc. (GMCR) shares fell nearly
10% after the company projected downbeat sales growth for the
current quarter. Einhorn told CNBC in an interview that he's still
short the stock.
In addition to economic data, investors also parsed through
comments from Chicago Fed President Charles Evans. In an interview
with CNBC, Evans said he's optimistic the U.S. economy will improve
and that the Fed's policies have done a lot of good already.
Evans, a member of the policy-making Federal Open Market
Committee, was the first to call for the Fed to set a jobless-rate
level that would need to be hit in order for the central bank to
lift interest rates.
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