By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks declined on Thursday, with
the S&P 500 snapping its seven-session winning streak, as
investors worried about developments related to Syria and Federal
Reserve policy moves.
The Dow Jones Industrial Average (DJI) dropped 25.96 points, or
0.2%, to 15,300.64. J.P. Morgan Chase & Co. (JPM) fell 1.9%,
making the bank the biggest decliner in the Dow.
Bolstering the blue-chip index, shares of Walt Disney Co. (DIS)
rallied 2.4% after Bloomberg News reported the media conglomerate
plans to repurchase between $6 billion and $8 billion in shares in
the new year.
Halting its longest winning run since July, the S&P 500
(SPX) dropped 5.71 points, or 0.3%, to 1,683.42, with materials and
financials posting the biggest losses among its 10 major industry
groups.
In the materials sector, Cliffs Natural Resources Inc. (CLF)
fell 5.2% after a downgrade from FBR, and Newmont Mining Corp.
(NEM) shed 4.2% alongside falling metals prices.
Off the S&P 500, Barrick Gold Corp. (ABX) fell 5.5% as the
price of gold tumbled. Gold futures for December delivery (GCZ3)
slid $33.20, or 2.4%, to $1,330.60 an ounce, while crude-oil
futures for October delivery (CLV3) added $1.04 to end at $108.60 a
barrel.
Walgreen Co. (WAG) was the top gainer in the S&P 500, with
shares of the drugstore chain rallying 5% after Goldman Sachs
raised its rating on the stock to conviction buy from buy.
The Nasdaq Composite (RIXF) lost 9.04 points, or 0.2%, to
3,715.97.
More than 642 million shares traded on the New York Stock
Exchange. Composite volume surpassed 3 billion shares.
Investors kept an eye on the conflict in Syria. U.S. Secretary
of State John Kerry arrived in Geneva on Thursday for discussions
with Russia's foreign minister on a proposed plan under which Syria
will turn over its chemical weapons to the international
community.
Separately, Syria's President Bashar al-Assad said the U.S.
needs to give up "its policy of threats" and stop shipping arms to
Syrian rebels before his government surrenders its chemical
weapons, The Wall Street Journal reported. Read: Putin's op-ed gets
chilly reception on Capitol Hill.
Wall Street's downside momentum picked up "as news came out that
before 'signing on' Syria wants the U.S. to stop threatening them
and to halt arms shipments to the rebels," wrote Elliot Spar,
market strategist at Stifel, Nicolaus & Co., in afternoon
commentary. "Oh yes, and we'll throw in a Mercedes S550 sedan as
well," Spar quipped.
U.S. stock futures displayed little reaction on Thursday morning
as data showed that jobless claims fell last week to their lowest
level since April 2006, with the data skewed by computer upgrades
in two states.
First-time claims for unemployment benefits declined by 31,000
to 292,000 in the week ending Sept. 7, but processing glitches
involving two states clouded the reading, the Labor Department
reported.
On Friday, several U.S. economic reports are due, including
retail sales, producer prices and consumer sentiment.
In the bond market, the yield on the 10-year Treasury note
(10_YEAR) fell 1 basis point to 2.908%. Many analysts believe the
bond market has priced in reduced stimulus from the Federal
Reserve, which could start tapering its asset purchases this
month.
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