By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Thursday retreated from
record levels reached during the previous session as losses
deepened after economic reports mostly disappointed.
Weekly jobless claims rose to their highest level since late
March, though the increase is most likely due to seasonal ups and
downs. Existing-home sales for November slumped 4.3%, a third month
of declines, to a seasonally adjusted annual rate of 4.9 million,
on higher mortgage rates and low inventory. The Philadelphia Fed's
December manufacturing index rises to 7, but below the consensus of
11. Leading indicators index for November rose to 98.3, showing
modest expansion in the economy.
The Dow Jones Industrial Average (DJI) dropped 15 points, or
0.1%, at 16,152.38. S&P 500 index (SPX) fell 4 points, or 0.2%,
to 1,806.32. Nasdaq Composite shed 12 points, or 0.3%, to
4,058.19.
Both Dow and S&P 500 closed at all-time highs on Wednesday
as investors took the view that a Fed tapering meant confidence in
the economy and welcomed the central bank's commitment to low rates
until the unemployment rate declines well below 6.5%, especially if
projected inflation remains below the 2% target.
Broad-based losses on the S&P 500 were led by utilities and
consumer staples sectors.
"This positive forward guidance on short-term interest rates
appears to have offset any near-term concerns about tapering," Gary
Thayer, chief macro strategist at Wells Fargo Advisors, wrote in a
note.
"This was probably an intentional decision by policymakers to
smooth out the market impact of tapering," he added.
In corporate news:
* Facebook fell 1.6% after the social network said it plans a
public offering of 70 million Class A shares, with 27 million from
Facebook itself and the rest from major shareholders, with
co-founder Mark Zuckerberg putting up the majority.
* Oracle rose 4.5% after the tech company's quarterly results
beat Wall Street forecasts late Wednesday.
* Darden Restaurants Inc. was down 2.3% premarket after the
restaurant chain company missed analysts expectations. The firm
also said it expects to spin off its struggling Red Lobster chain
after facing pressure from shareholders.
* ConAgra Foods Inc. jumped nearly 4.8% in premarket after
reaffirming its full-year outlook and posting a fiscal
second-quarter profit and sales gain.
* Rite Aid Corp. shares fell nearly 7.7% after the company cut
its per-share estimate for the fiscal year, but trimmed losses to
trade down 2%. It said fiscal third-quarter earnings rose 16%.
* Shares of Target Corp. fell 1.2% in premarket after the
company was hit by an extensive credit-card breach over the Black
Friday shopping weekend.
* Accenture shares climbed 4.3% after the management consulting
firm said it earned $1.15 per share in the fiscal first quarter, up
from $1.06 in the same quarter a year ago. That earnings growth
came from higher revenue and growth in new bookings.
In other markets:
* Losses for gold deepened in European trading hours, with the
metal briefly breaching the key psychological level of $1,200 an
ounce for the first time since the summer. The metal was last down
2.5%, with silver taking an even harder knock. Gold losses came as
the dollar hit a five-year high against the yen.
* European markets sailed higher, while Japan stocks soared to
seven-month highs.
More must-reads from MarketWatch
Follow our stock market live blog
Brett Arends: What the big money is betting on in 2014
Stock market's blockbuster growth to ease in 2014
Subscribe to WSJ: http://online.wsj.com?mod=djnwires