By Dan Strumpf And Saumya Vaishampayan
U.S. stocks slipped on Thursday, as investors pored through the
first batch of first-quarter earnings reports.
The Dow Jones Industrial Average fell 62 points, or 0.3%, to
17840. The S&P 500 lost six points, or 0.3%, to 2076. The
Nasdaq Composite Index declined 18 points, or 0.4%, to 4933.
Trading activity was muted, with investors awaiting additional
first-quarter reports expected in the coming weeks. Money managers
are widely bracing for what is expected to be one of the weakest
earnings seasons in years.
"The market is definitely lacking catalysts right now," said Tom
Carter, managing director at JonesTrading. "That's going to
change...but it's early."
The Dow last saw a move of 1% on March 31. On Wednesday, stocks
rose modestly. The Dow added 0.2% to 17902.51 and the S&P 500
gained 0.3% to 2081.90.
"The market is exceptionally quiet right now," said Alex
Manzara, vice president at futures brokerage R.J. O'Brien &
Associates. "We're essentially marking time," he added.
Alcoa Inc. unofficially kicked off the first-quarter reporting
season Wednesday after the bell. Alcoa shares fell 5% after the
aluminum company swung to a profit but its revenue missed analysts'
expectations.
Bed Bath & Beyond Inc. shares lost 5.7% after the retailer
reported a 4% decline in quarterly profit and projected earnings
below Wall Street estimates.
Shares of Constellation Brands Inc. rose 0.3% after the
alcoholic-beverage maker reported its first quarterly dividend
since 1973 and reported an increase in profits.
Economic reports have indicated a slowdown in the U.S. economy
at the start of the year. Now, investors are waiting to see how
companies fared in the first quarter. Including 23 companies that
have reported, earnings at S&P 500 companies are expected to
fall 4.9% in the first quarter from a year ago. Earnings at energy
companies in the index are expected to slump 65% from a year
earlier, as low oil prices weigh on results. The strong dollar is
another headwind for multinational companies with significant
operations overseas.
In economic news, the Labor Department said jobless claims rose
by 14,000 to 281,000 in the week ended April 4. Economists surveyed
by The Wall Street Journal expected 280,000 new claims. Later in
the morning, a reading on wholesale inventories for February is
also due.
European stocks extended gains. The Stoxx Europe 600 index
gained 1%, on track to close at a record. The benchmark's record
close is 405.50, set in March 2000. France's CAC 40 gained 1.3% and
Germany's DAX added 1%.
The euro inched down to $1.0770 from $1.0782 on Wednesday. The
yield on the 10-year Treasury note fell to 1.909% from 1.895% on
Wednesday. Yields fall as prices rise.
Walgreens Boots Alliance Inc. said it would close 200 domestic
stores as it continues to restructure and reported a 35.5% increase
in sales in its February quarter amid a severe cold season. Shares
added 2.6%.
In commodity markets, gold futures shed 0.3% to $1199.30 an
ounce.
Oil prices rebounded from their biggest loss in two months.
Crude-oil futures rose 1.7% to $51.22 a barrel.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com and
Dan Strumpf at daniel.strumpf@wsj.com
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