US close: Stocks struggle for direction, amid mixed data

US stocks struggled for direction on Thursday, as investors digested a raft of mixed economic data.

The Dow Jones Industrial Average closed down 13 points to 16,272.01, while the S&P 500 and the Nasdaq were four and 12 points higher respectively.

China-driven concerns ease up

Asian stocks closed mostly higher, with investors buoyed by news that concerns over a slowdown in China looked to be easing up.

According to government data, factory output in China improved slightly, edging up to 49.8 from August’s three-year low of 49.7 and against analysts’ expectations for an unchanged reading.

However, a separate survey conducted by Caixin/Markit revealed the purchasing managers’ index fell to a six-and-a-half year low, slipping from August’s reading of 47.3 to 47.2, although the figure was marginally better than the 47 flash estimate published last month.

“Economic growth in emerging economies has weakened substantially this year, and China may well see its growth slow to 6.8% this year from 7.3%, and the PMI data tends to confirm this,” said Brenda Kelly, head analyst at London Capital Group.

Thursday data

US manufacturers grew in September at their slowest pace in over two years, figures released on Thursday showed.

The Institute for Supply Management revealed its manufacturing index declined from 51.1 to 50.2 in August, falling below the 50.6 reading analysts had expected.

The figure marked the lowest reading since May 2013, although it remained over the 50 threshold that indicates expansion.

"The September ISM data as consistent with the regional surveys already reported that show a stagnant US manufacturing sector," said analysts at Barclays.

"Lower energy prices, a strong dollar, and weak international demand are likely to prevent a strong rebound for the sector in the near term."

There was better news elsewhere as, according to the Commerce Department, construction spending increased 0.7% month-on-month in August, compared with analysts’ expectations of a 0.6% gain and unchanged from the previous month. On a year-on-year basis, construction spending increased 13.7%.

Meawhile the number of first time unemployment benefits claimants rose by more than expected last week, as new claims rose by 10,000 to 277,000 in the week to 26 September, compared with analysts' expectations for a 270,000 reading.

"On balance, stable initial jobless claims and remarkably low continuing claims suggest labor market health remains intact," analysts at Barclays said.

"In tomorrow’s September employment report, we look for non-farm payroll gains of 200,000 and an unchanged unemployment rate of 5.1%, in line with the low readings of initial and continuing jobless claims reported during the month."

Elsewhere, the headline seasonally-adjusted Markit Manufacturing Purchasing Managers’ Index (PMI) in September edged up to 53.1 compared with the 53.0 reading reported in the flash estimate published last week.

While the final reading was marginally above expectations calling for an unchanged reading, it marked the second-lowest level since October 2013.

“The manufacturing slowdown therefore will be insufficient on its own to deter the Fed from hiking rates later this year, but adds a warning light that the pace of economic growth is set to slow as we move into the final quarter of the year,” said Chris Williamson, Markit’s chief economist.

October interest rates hike still possible

The American consumer was not pulling back and neither were the country´s businessmen.

"We are on track", Jeffrey Lacker, the president of the Federal Reserve bank of Richmond, told the Wall Street Journal´s John Hilsenrath in an interview. That meant a first interest rate increase at the Fed´s October policy meeting was possible.

By then rate-setters in the US would have the latest employment and consumption figures under their arm.

In company news, Deere & Co edged 1.50% lower after the tractor maker said it had reached a tentative agreement with the United Auto Workers Union to replace a deal expired on Thursday. Wal-Mart slid 0.88% on news a round of layoffs could get underway as early as Friday, while

Google and Microsoft gained 0.57% and 0.81% respectively after agreeing to dismiss patent-related lawsuits between each other.

Elsewhere, European stocks edge higher, while oil prices fell, with West Texas Intermediate losing 0.30% to $44.96 a barrel, while Brent shed 0.96% to $47.91 a barrel.

The dollar fell 0.17% against the euro and was broadly stable against the pound and the yen respectively, while gold futures edged 0.06% lower to $1,114.41.

S&P 500 - Risers
Williams Companies Inc. (WMB) $38.98 +5.78%
Salesforce.Com Inc. (CRM) $72.90 +5.00%
Edwards Lifesciences Corp. (EW) $149.00 +4.80%
Celgene Corp. (CELG) $112.86 +4.34%
Vulcan Materials Co. (VMC) $92.90 +4.15%
Sherwin-Williams Co. (SHW) $231.87 +4.08%
Allergan plc (AGN) $282.52 +3.94%
Valero Energy Corp. (VLO) $62.24 +3.56%
Marathon Petroleum Corporation (MPC) $47.93 +3.45%
LyondellBasell Industries (LYB) $85.98 +3.14%

S&P 500 - Fallers
Peabody Energy Corp. (BTU) $17.73 -14.35%
Windstream Holdings Inc (WIN) $5.70 -7.17%
CONSOL Energy Inc. (CNX) $9.13 -6.82%
Mattel Inc. (MAT) $19.84 -5.77%
United States Steel Corp. (X) $9.91 -4.89%
Seagate Technology Plc (STX) $42.82 -4.42%
McCormick & Co. (MKC) $78.68 -4.26%
National Oilwell Varco Inc. (NOV) $36.06 -4.22%
Joy Global Inc. (JOY) $14.31 -4.15%
Hudson City Bancorp Inc. (HCBK) $9.76 -4.03%

Dow Jones I.A - Risers
Pfizer Inc. (PFE) $31.84 +1.37%
Home Depot Inc. (HD) $117.05 +1.35%
Goldman Sachs Group Inc. (GS) $176.02 +1.30%
Microsoft Corp. (MSFT) $44.62 +0.81%
JP Morgan Chase & Co. (JPM) $61.42 +0.74%
Nike Inc. (NKE) $123.82 +0.69%
Unitedhealth Group Inc. (UNH) $116.58 +0.49%
Walt Disney Co. (DIS) $102.68 +0.47%
Visa Inc. (V) $69.98 +0.46%
E.I. du Pont de Nemours and Co. (DD) $48.35 +0.31%

Dow Jones I.A - Fallers
Cisco Systems Inc. (CSCO) $25.73 -1.98%
Caterpillar Inc. (CAT) $64.39 -1.48%
Verizon Communications Inc. (VZ) $42.96 -1.26%
Travelers Company Inc. (TRV) $98.34 -1.20%
International Business Machines Corp. (IBM) $143.59 -0.95%
Wal-Mart Stores Inc. (WMT) $64.27 -0.88%
Coca-Cola Co. (KO) $39.80 -0.80%
United Technologies Corp. (UTX) $88.36 -0.71%
3M Co. (MMM) $140.81 -0.68%
Apple Inc. (AAPL) $109.58 -0.65%

Nasdaq 100 - Risers
Verisk Analytics Inc. (VRSK) $78.16 +5.75%
Celgene Corp. (CELG) $112.86 +4.34%
Charter Communications Inc. (CHTR) $181.76 +3.36%
Liberty Media Corporation - Class A (LMCA) $36.87 +3.22%
Vertex Pharmaceuticals Inc. (VRTX) $107.25 +2.99%
Sandisk Corp. (SNDK) $55.91 +2.91%
Mylan Inc. (MYL) $41.41 +2.86%
Netflix Inc. (NFLX) $105.98 +2.63%
Liberty Global plc Series A (LBTYA) $43.96 +2.36%
Tractor Supply Company (TSCO) $85.95 +1.93%

Nasdaq 100 - Fallers
Illumina Inc. (ILMN) $157.21 -10.58%
Mattel Inc. (MAT) $19.84 -5.77%
Vimpelcom Ltd Ads (VIP) $3.91 -4.98%
Seagate Technology Plc (STX) $42.82 -4.42%
Tesla Motors Inc (TSLA) $239.88 -3.43%
Fastenal Co. (FAST) $35.50 -3.03%
Wynn Resorts Ltd. (WYNN) $51.67 -2.73%
Discovery Communications Inc. Class A (DISCA) $25.35 -2.61%
Analog Devices Inc. (ADI) $54.94 -2.61%
Autodesk Inc. (ADSK) $43.10 -2.36%