Dow Slips Before Jobless Report; Oil Rises

Stocks fell on profit-taking Thursday, the eve of the closely watched unemployment report, and crude oil got more expensive after the U.S. sent more troops into the Middle East.

The dollar fell against the Japanese yen. Treasury bond prices were mostly down.

The Dow Jones industrial average finished just 12.46 points lower at 8,117.25 after recovering from a midday deficit of 57 points.

But in the broader market, advancing issues led declines by a 9-7 margin in trading of 699 million shares on the New York Stock Exchange.

Computer-related shares opened strong and remained higher much of the day, with the technology-heavy Nasdaq composite index bobbing above 1,700 for the first time since just before October’s sell-off. But it retreated toward the close, dropping 3.54 points, or 0.21%, to 1,676.90.

Smaller and mid-sized companies outperformed the blue chips for a second straight day, giving the broad market a more positive tone than the major indices would suggest. The Russell 2,000 index of smaller companies gained 2.22 points, or 0.5%, to 444.06.

The Standard & Poor’s 500 snapped a three-session run of record-high closes, dipping 3.37 points to close at 1,003.53.

“After the huge run we’ve had the last week and a half, it’s a little surprising there hasn’t been more of a profit-taking setback than we’ve had,” said Alfred Kugel, senior investment strategist at SteinRoe & Farnham.

Analysts called the market directionless, and they detected no new catalysts to steer investors with the fourth-quarter earnings reporting period drawing to a close and no major external events hitting Wall Street.

“There’s nothing to get anyone excited one way or another,” one analyst said.

Earlier Thursday, the Commerce Department reported that factory orders rose 1.2% in December, the strongest increase since April.

Traders said today’s report on January U.S. employment could be making some investors cautious. The unemployment rate, which has been hovering at its lowest level in nearly 25 years, is expected to edge down to 4.6% in January from 4.7% in December.

The monthly report is a closely watched barometer of inflationary pressures on the economy. But some analysts said the report may not bring about the volatile reaction in the stock market that it has in the past because inflation concerns have eased.

Analysts said Wall Street generally has adopted the view put forth by Federal Reserve Board Chairman Alan Greenspan that Asia’s economic crisis will slow the U.S. economy and take pressure off the tight labor market.

In the bond market, the yield on the bellwether 30-year bond rose to 5.93% from 5.86% on Wednesday.

Oil markets reacted to the news that President Clinton was sending 2,200 Marines on warships from the Mediterranean Sea to the Persian Gulf to join the already-large U.S. forces gathered near Iraq. Earlier Thursday, a third American aircraft carrier arrived in the area.

At the New York Mercantile Exchange, crude oil for March delivery closed 21 cents higher at $16.58 a barrel, from $16.37 Wednesday.

Among Thursday’s highlights:

* General Motors fell $1.88 to $60 and Ford Motor fell $1.25 to $50.06. Both companies, whose sales fell more than expected in January, do best when the economy is expanding.

* In the volatile tech sector, Intel fell for the first time in four days, losing $1.06 to $86.50, and Micron Technology lost $3.13 to $34.88

Netscape rallied for a second day on reports that it is considering selling all or part of the company. The software firm rose $2.69 to $21.94.

* Retail stocks rallied as companies said sales generally rose more than expected in January. Sears Roebuckgained $2.13 to $50.25 after reporting that same-store sales--sales at stores open a year or more--rose 5.4%. Talbot’s rose $1.13 to $15.13 on news of a 20% rise in same-store sales.

In commodities trading, silver rose for a fifth day to its highest level in more than nine years amid low inventories and strong demand.

Silver is up 10% in the two days since billionaire Warren Buffett said his company, Berkshire Hathaway, had bought a huge stake. Now makers of jewelry and film are rushing to buy, though many speculators who believe prices will fall are selling borrowed securities, planning to buy them back later at lower prices.

Silver for March delivery rose 26 cents, or 3.7%, to $7.28 an ounce on the Comex division of the New York Mercantile Exchange, the highest closing price since July 22, 1988.

Silver for immediate delivery in London rose 33.5 cents to $7.64 an ounce.

Overseas, London’s FTSE-100 rose 0.19%. Tokyo’s Nikkei index closed up 0.71%.

Market Roundup, D6