By Saumya Vaishampayan
U.S. stocks traded near the flat line Thursday, giving up
earlier gains as a continued slide in oil prices weighed on energy
stocks.
The Dow and the S&P pulled back from fresh intraday
records.
The Dow Jones Industrial Average fell 1 point to 17611. The
index rose as high as 17705.48 earlier, an intraday record. The
S&P 500 slid down five points, or 0.2%, to 2033 and the Nasdaq
Composite Index fell two points to 4674.
Traders said volumes were lighter than normal, which could
exaggerate swings in the market.
Energy stocks fell the most on the S&P, with the sector down
2.1%. "The weakness in oil prices is putting additional pressure on
energy stocks, particularly in exploration and integrated
companies," said Jeffrey Yu, head of single-stock derivatives
trading at UBS AG.
Crude-oil futures fell 2.5%, to $75.23 a barrel. On Wednesday,
crude-oil futures dropped to their lowest close since October
2011.
Overall, stocks have recovered from their sharp pullback that
ended in mid-October as investors focused on broadly positive U.S.
economic data and earnings, with the Dow and S&P pushing to a
series of record highs. The Dow has gained 9.3% from its Oct. 16
low, through Wednesday's close.
Stocks had "quite a strong run in the last month," said Ryan
Larson, head of U.S. equity trading at RBC Global Asset Management.
"The U.S. markets remain quite resilient in the face of broader
economic concerns globally," he added.
Economic reports were broadly upbeat on Thursday. Over five
million people were hired in September, marking the first time
hiring crossed the 5 million level since December 2007, according
to the Labor Department's monthly Job Openings and Labor Turnover
Survey. At the same time, 2.8 million people quit a job, the most
since April 2008.
A higher quit rate is a sign of an improving labor market
because it tends to indicate that workers are confident they'll
find another job or one that pays more, said Quincy Krosby, market
strategist at Prudential Financial.
The Labor Department said that jobless claims rose by 12,000, to
290,000, in the week ended Nov. 8. That was above the 281,000
claims expected by economists surveyed by The Wall Street Journal.
Still, the report marked the ninth straight week that claims have
been below 300,000, their longest stretch below this level since
2000.
"The trajectory [of claims] is still very positive," said Ms.
Krosby.
Earnings from retailers were in focus Thursday.
Wal-Mart Stores said sales rose in the third quarter and added
that low fuel prices could help results in the current period.
Same-store sales at U.S. Wal-Mart stores rose 0.5% in the period,
marking the first increase in about two years. The retailer
narrowed its outlook for the year, now expecting per-share earnings
of $4.92 to $5.02 a share. Wal-Mart shares rose 4.1%.
J.C. Penney Co. reported a narrower loss in the third quarter as
the company continued to cut costs. Revenue fell 0.5% to $2.76
billion, missing analyst expectations. Shares fell 7.6%.
In other corporate news, Berkshire Hathaway Inc. agreed to
acquire the Duracell battery business from Procter & Gamble Co.
in a deal valued at $4.7 billion. The deal is expected to close in
the second half of 2015. Shares of Procter & Gamble fell 0.7%,
while those of Berkshire Hathaway advanced 0.2%.
Burns McKinney, a portfolio manager with NFJ Investment Group,
an Allianz Global Investors company, said he expects U.S. stocks to
gain over the next year but at a more muted pace. Those gains will
be driven by earnings and low interest rates, which have made other
assets less attractive, he said. "There's nowhere else to look," he
said.
The Federal Reserve has kept short-term interest rates near zero
since December 2008. Officials are now debating when to raise those
rates. In remarks Thursday, Federal Reserve Bank of New York
President William Dudley said it isn't appropriate for the Fed to
begin raising rates, pointing to low inflation and remaining slack
in the labor market.
European stocks rose, with the Stoxx Europe 600 up 0.2%. German
data showed that consumer price inflation stabilized at a low level
in October.
The yield on the 10-year Treasury note fell to 2.346% from
2.359% on Wednesday. Yields fall as prices rise.
Gold futures added 0.2% to $1161.70 an ounce.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com