By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks reversed opening gains on
Thursday as fears over the escalation of conflict between Ukraine
and Russia as well as slowdown in China outweighed upbeat domestic
economic data.
Stocks opened higher after a pair of upbeat economic reports,
which showed a surprise drop in a number of people claiming
unemployment benefits and an uptick in retail sales in February,
but indexes gave up gains less than hour into trading and sold off
by afternoon.
The S&P 500 (SPX) was down 12 points, or 0.7% at 1,855.65,
pulling away from its previous closing high. Technology and energy
sector stocks were leading losses on the benchmark index.
The Dow Jones Industrial Average (DJI) dropped 122 points, or
0.8%, to 16,218.91, with 27 of 30 stocks trading lower. Pfizer Inc
and American Express Co were leading losses.
The Nasdaq Composite (RIXF) lost 39 points, or 0.9%, to
4,284.34.
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Giving a boost to stocks earlier was a pair of reports pointing
to the strengthening economy. A surprise drop in weekly jobless
claims and a rise in retail sales provided support to stocks. The
number of people who applied for U.S. unemployment benefits in the
first week of March fell to the lowest level in more than three
months, perhaps a sign of an uptick in labor-market conditions.
Sales at U.S. retailers rose in February for the first time in
three months as shoppers boosted purchases of a variety of goods
after being cooped up by one of the harshest winters in years.
But investors turned all their attention to the Fed
policy-setting meeting next week while keeping a weary eye on
Crimea's vote this weekend to decide wether to stay with Ukraine or
join Russia. The FOMC policy setting meeting is scheduled for March
18-19 and Fed Chairwoman Janet Yellen will give her first press
conference in her new role. Read also: Stock investors look past
jobs to Yellen, Ukraine
China slowing; Copper drops
Asian markets were mixed, with the Nikkei 225 index ending
slightly lower, and the Hang Seng Index falling 0.7% after data
showed China's industrial production slowed in the January-February
period, while retail sales in January eased.
The Shanghai Composite rose 1%. Some attributed this to comments
by Chinese Premier Li Keqiang, who said he was confident the
Chinese economy would meet its 7.5% growth goal for this year.
European stocks sold off in late session.
Gold (GCJ4) shifted moderately lower, but copper prices (HGK4),
under pressure this week due to China worries, were off another
3.3%.
The dollar strengthened against other currencies after
better-than-expected retail sales and jobless numbers. 10-year
Treasury yields ticked up.
Amazon rallies; Herbalife slumps
Shares in Amazon.com Inc (AMZN) rose 1.3% after the online
retailer said it would raise the annual price for its Prime
membership to $99 from $79.
Williams-Sonoma Inc. (WSM) jumped 10% after the retailer topped
forecasts with its quarterly earnings and revenue, as well as
announcing a hike in its dividend late Wednesday.
Plug Power(PLUGD) rose more than 10% after the fuel-cell company
topped a sales forecast in results on Thursday.
Herbalife Ltd. (HLF) fell 3.3% after the company announced an
investigation by regulators on Wednesday, a day after hedge-fund
manager accused it of violating Chinese regulation.
Dollar General Corp. (DG) shares fell 3.2% after posting a sales
rise, but an outlook that fell short of expectations.
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