By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market dipped in and
out of negative territory and ended Thursday marginally lower,
breaking a four-day winning streak.
The S&P 500 and Dow Jones Industrial Average hit intraday
record levels in early trading. However, gains petered out by
afternoon, ahead of the March jobs report due on Friday.
Initial reaction to Thursday's economic reports was muted.
Weekly jobless claims rose by more than expected, the U.S. trade
deficit gap widened by more than forecast and the ISM services
index rose in line with estimates.
Across the Atlantic, European Central Bank President Mario
Draghi told reporters the central bank had considered quantitative
easing. The ECB left key policy unchanged, but mildly disappointed
investors who were hoping for an announcement of quantitative
easing measures.
The S&P 500 (SPX) ended the day 2.13 points, or 0.1%, lower
at 1,888.74.
The Dow Jones Industrial Average (DJI) closed down less than a
point at 16,572.55, failing to top its previous record reached Dec
31. 2013.
The Nasdaq Composite (RIXF) finished the day down 38.72 points,
or 0.9%, at 4,237.74, weighed down by sharp selloffs in highflying
stocks such as biotechs and Internet stocks.
Read the recap of MarketWatch's live blog of today's
stock-market action.
Kim Caughey Forrest, senior equity analyst at Fort Pitt Capital,
says that markets are taking a breather ahead of the important jobs
report due on Friday.
"The ADP data this week and jobless claims were softer and
investors are holding their breath before the official jobs
numbers. We are finally at the point where data are no longer
impacted by cold weather, so Friday's jobs report will give
investors a more accurate indication of where the economy is
headed," Forrest said.
The number of Americans who applied for unemployment benefits in
the last week of March rose to the highest level in a month, but
initial claims continued to hover near the lowest level since the
end of the last recession.
The U.S. trade deficit with other nations rose in February to a
five-month high, mainly because of lower exports such as Boeing
aircraft and domestically produced petroleum.
Growth picked up last month for the U.S. service sector and
other nonmanufacturing companies, according to data released
Thursday.
Among individual stocks, two classes of Google Inc. shares
created after a 2-for-1 stock split rose sharply as they began
trading Thursday but pared gains by the close. The new class of
nonvoting Class C shares are trading under "GOOG" (GOOG), while
Class A shares are trading under the new ticker "GOOGL"
(GOOGL).
Perry Ellis International Inc. (PERY) shares rose 3.1% even as
the closing company swung to a loss on write-downs as sales fell
16%, as expected. In February, the apparel maker cut its full-year
outlook, citing bad weather and weaker consumer spending.
Shares of CACI International Inc. (CACI) fell 4.2% after the
company cut its earnings-per-share outlook for the year and lowered
its revenue target. Shares fell 8.8% in late trading on
Wednesday.
Shares of Plug Power Inc. (PLUGD) rose 2% after the company said
it bought Washington-based fuel-cell developer ReliOn Inc., for $4
million in stock.
Monsanto Co. (MON) rose 2.3% a day after reporting earnings that
topped analyst estimates. J.P. Morgan analysts upgraded the
agricultural company to overweight from neutral Thursday and raised
the price target to $125 from $115. Analyst Jeffrey Zekauskas wrote
that Monsanto may be a prime target for an activist investor.
In other markets, the Nikkei Average closed up 0.8%, and the
Shanghai Composite Index fell 0.7%. China announced pro-growth
measures, which analysts dubbed 'the mini stimulus," but markets
fell back after a fresh move by China's central bank to drain
liquidity. European stocks closed mostly flat.
Gold prices(GCM4) eased back, but oil rose slightly. The euro
fell against the dollar after European Central Bank President Mario
Draghi said there was discussion of quantitative easing at the
latest meeting, adding to speculation that the ECB would implement
unconventional measures to fight falling inflation.
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