By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks edged lower on Thursday,
as investors seemed fixated on interpreting Federal Reserve
Chairwoman Janet Yellen's comments regarding the timing of interest
rates hikes.
Investors will focus on a number of economic reports to get a
sense of economic growth. Before the opening bell, a Labor
Department report showed a smaller increase in weekly unemployment
benefit applications than expected, with the four-week average at
the lowest level since the end of November.
The S&P 500 (SPX) was 5.8 points, or 0.3%, lower at
1,855.15. The Dow Jones Industrial Average (DJI) dropped 56.90
points, or 0.4%, to 16,166.20.
The Nasdaq Composite (RIXF) shed 19.25 points, or 0.5%, to
4,288.31.
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Markets fell on Wednesday after Federal Reserve Chairwoman Janet
Yellen said rate hikes could happen about six months after the
central bank ends its bond purchases. At the current pace of
tapering, this timeline indicates a rate increase as early as
spring 2015.
At 10 a.m. Eastern Time, a trio of releases are due, with the
Philly Fed index likely to get the most attention. The
manufacturing index is forecast to rise to 3.5 points in March from
a negative 6.3 in February, and the release could offer more clues
on how much bad weather hurt the economy earlier in 2014. Any
number above zero indicates more manufacturers are expanding
instead of scaling back their business.
Existing-home sales are also on tap, expected to show a slight
dip for February, partly due to the harsh weather but also owing to
higher mortgage rates compared to last summer.
Leading economic indicators for February may show a move lower
to 0.2% from 0.3%.
Burlington Stores, Guess report earnings
Burlington Stores Inc. (BURL) advanced 12% ahead of the open
after the clothing retailer reported adjusted earnings per share
ahead of expectations.
Scholastic Corp. (SCHL) dropped 5% even as the publishing,
education and media company said its fiscal third-quarter loss
narrowed thanks to a favorable settlement of federal tax
audits.
Guess Inc. (GES) slid 5.8% in early trading Thursday after the
fashion retailer's outlook fell short of Wall Street estimates. The
company reported its fourth-quarter earnings on Wednesday after the
market close.
Lennar Corp. (LEN) rose 0.5%, after the home builder reported
earnings that beat expectations and said it remains optimistic
about the U.S. housing market.
ConAgra Foods Inc. (CAG) added 1.2% after the packaged-foods
company reported a rise in fiscal third quarter profit.
Shares in Walter Energy (WLT) tumbled 14% after the company
doubled the size of its 5-year 9.5% senior secured note sale to
$200 million along with the sale of $350 million in second lien PIK
toggle notes due in 2020, according to Dow Jones.
Reporting after the market close on Thursday, Nike Inc. (NKE) is
forecast to post fiscal third-quarter earnings of 72 cents a
share.
Elsewhere, European and Asian markets were bruised by the
rate-hike signal, while most commodities, including oil and gold,
moved lower.
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