By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Thursday retreated from
record levels reached during the previous session but trimmed
losses by midday, shrugging off economic reports that mostly
disappointed.
Weekly jobless claims rose to their highest level since late
March, though the increase is most likely due to seasonal ups and
downs. Existing-home sales for November slumped 4.3%, a third month
of declines, to a seasonally adjusted annual rate of 4.9 million,
on higher mortgage rates and low inventory. The Philadelphia Fed's
December manufacturing index rises to 7, but below the consensus of
11. Leading indicators index for November rose to 98.3, showing
modest expansion in the economy.
The Dow Jones Industrial Average (DJI) briefly turned positive,
but was mostly flat at 16,168.45. S&P 500 index (SPX) was down
3 points, or 0.2%, to 1,807.352. Nasdaq Composite shed 12 points,
or 0.3%, to 4,057.14.
Both Dow and S&P 500 closed at all-time highs on Wednesday
as investors took the view that a Fed tapering meant confidence in
the economy and welcomed the central bank's commitment to low rates
until the unemployment rate declines well below 6.5%, especially if
projected inflation remains below the 2% target.
Broad-based losses on the S&P 500 were led by utilities and
consumer staples sectors.
"This positive forward guidance on short-term interest rates
appears to have offset any near-term concerns about tapering," Gary
Thayer, chief macro strategist at Wells Fargo Advisors, wrote in a
note.
"This was probably an intentional decision by policymakers to
smooth out the market impact of tapering," he added.
In corporate news:
* Facebook fell 2.3% after the social network said it plans a
public offering of 70 million Class A shares, with 27 million from
Facebook itself and the rest from major shareholders, with
co-founder Mark Zuckerberg putting up the majority.
* Oracle rose 4.7% after the tech company's quarterly results
beat Wall Street forecasts late Wednesday.
* Darden Restaurants Inc. was down 5% after the restaurant chain
company missed analysts expectations. The firm also said it expects
to spin off its struggling Red Lobster chain after facing pressure
from shareholders.
* ConAgra Foods Inc. jumped 6% after reaffirming its full-year
outlook and posting a fiscal second-quarter profit and sales
gain.
* Rite Aid Corp. shares fell 9.7% after the company cut its
per-share estimate for the fiscal year, but trimmed losses to trade
down 2%. It said fiscal third-quarter earnings rose 16%.
* Shares of Target Corp. fell 2% after the company was hit by an
extensive credit-card breach over the Black Friday shopping
weekend.
* Accenture shares climbed 4.4% after the management consulting
firm said it earned $1.15 per share in the fiscal first quarter, up
from $1.06 in the same quarter a year ago. That earnings growth
came from higher revenue and growth in new bookings.
In other markets:
* Gold futures dropped below $1,200 an ounce on Thursday, poised
for their lowest close in more than three years, as the Federal
Reserve's January tapering plans and a rally in the U.S. dollar
drove prices lower. March silver was hit even harder Thursday, down
81 cents, or 4%, to $19.26 an ounce.
* European markets sailed higher, while Japan stocks soared to
seven-month highs.
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