Markets Close Mixed
Stocks ended mixed Thursday after Wednesday’s big gains, as some investors took profits.
In the bond market, Treasury yields continued to rise ahead of today’s report on November employment and ahead of Tuesday’s Federal Reserve meeting.
In commodities trading, oil prices tumbled on worries that global inventories may continue to rise.
On Wall Street, the Nasdaq composite index added 7.43 points, or 0.4%, to 2,054.27, after pulling back from a midday high of 2,065.69.
The Dow Jones industrials slipped 15.15 points, or 0.2%, to 10,099.14 after rising to 10,169.44.
Stocks had rocketed Wednesday, led by technology issues, amid more upbeat reports on the economy and from major tech firms, including Cisco Systems and Oracle. The Dow soared 220.45 points and the Nasdaq index surged 83.74 points.
“We ran the one-minute mile this week; we’re seeing a little bit of a breather,” said Bryan Piskorowski, market commentator for Prudential Securities.
Thursday’s weakness may have reflected disappointment over retailers’ sales reports for November. Major retail shares closed lower.
Despite the losses in the Dow and other indexes Thursday, however, winners and losers were nearly even on the New York Stock Exchange, and winners had a 21-to-16 edge on Nasdaq.
The fact that profit-taking wasn’t heavier “is a sign that there’s true interest in the stock market, true demand,” Marc Klee, who helps manage $1.5 billion at American Fund Advisors, told Bloomberg News.
Investors will get more clues about the economy’s trend today, when the government reports on November employment. Data Thursday showed a plunge in new claims for jobless benefits, suggesting the employment report could be better than expected.
Bond investors fear that an economic turnaround would put an end to interest rate cuts by the Fed, though most economists still believe the central bank will cut its key rate, now 2%, to at least 1.75% on Tuesday.
Long-term Treasury yields rose again Thursday, with the 10-year T-note climbing to 5.01% from 4.89% on Wednesday.
In commodities markets, near-term crude oil futures in New York slid 95 cents, or nearly 5%, to $18.54 a barrel amid fears that OPEC and other producers won’t cut output enough to boost prices.
Even if oil exporters cut daily output by 2 million barrels as planned for Jan. 1, reduced shipments from the Persian Gulf won’t affect high U.S. crude inventories until mid-February, when demand normally weakens.
Among Thursday’s highlights:
* In the retail sector, Sears lost 61 cents to $45.70, Kohl’s fell $1.20 to $70.20, Target slid 95 cents to $38.67 and Best Buy tumbled $3.83 to $69.48.
* Among tech leaders, Cisco tacked on 25 cents to $21.79, Oracle rose 53 cents to $15.90 and Yahoo jumped $1.96 to $19.02, but IBM eased $1.26 to $120.14 and Dell slipped 26 cents to $29.41.
Some semiconductor stocks, including Intel and Advanced Micro Devices, gained in after-hours trading after issuing upbeat forecasts.
* Many financial stocks continued to rise despite higher bond yields. Comerica gained $1.07 to $54.25, J.P. Morgan Chase jumped $1.36 to $40.38 and Merrill Lynch was up $1.46 to $53.98.
* Fleetwood Enterprises tumbled $2.47 to $10.88. Standard & Poor’s cut the recreational-vehicle maker’s credit rating to BB-minus from BB-plus, citing a “materially weakened business position.” The company this week said its lenders have limited its available credit.
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Market Roundup: C7, C8
