By Anora Mahmudova
NEW YORK (MarketWatch) -- U.S. stocks dropped on Thursday as
investors took in encouraging retail-sales data, but also a
jobless-claims report that was worse than expected.
The S&P 500 (SPX) was down 2.6 points, or 0.1%, at 1,779,
while the Dow Jones Industrial Average (DJI) fell 67.04 points, or
0.4%, to 15,819.
The Nasdaq Composite (RIXF) was flat at 4,002.
The S&P 500 has retreated from its all-time high reached
earlier this week, but analysts say this is more due to profit
taking, since the index has gained 25% year-to-date.
Investors digested positive retail sales figures and
higher-than-expected jobless claims. U.S. consumers were more
confident with their spending in November.
Weekly jobless claims, however, shot up to 368,000 from 300,000
the week before, and were higher than the consensus forecast of
325,000. Seasonal factors may have distorted the data, as the
four-week moving average still indicates an improving labor
market.
"Neither the jobless claims nor the retail sales will move the
Fed's current position on tapering," said John Canally, investment
strategist for LPL Financial. Tapering refers to reduction in the
Federal Reserve's bond-buying program.
"Today's higher-than-expected claims numbers brought up the
moving average a bit, but it's all about seasonality. The
underlying trend in the labor market is still strong. As the retail
sales indicated, consumers are still spending and the momentum is
good," Canally added.
* The buzz: The market, by many measures, does appear to be on
solid ground heading into 2014, but investors need a sobering
splash in the face, says MarketWatch's latest Need To Know
column.
* Today's movers & shakers: Facebook Inc. rose 4% following
news of the company's inclusion in the S&P 500. Lululemon
Athletica Inc. shares fell 8.7% after quarterly results showed
earnings per share of 45 cents on net revenue of $379.9 million but
warned of flat fourth-quarter sales, well below analysts
expectations. Cisco Systems Inc. and Nike Inc. were the laggards on
the Dow. Read more in the Movers & Shakers column.
* Other markets: Gold futures fell sharply and crude oil edged
higher. Stocks in Shanghai and Hong Kong closed lower, while
European stock markets pared losses after a mixed bag of U.S.
data.
Read more on MarketWatch:
-- Microsoft may have a holiday hit with Surface 2.0
-- Apple's share of China's smartphone market jumps in
October
-- Global economy's recovery is a sheep in wolf's clothing
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