US close: Markets end mixed as traders weigh data

US stocks ended relatively flat on Thursday as traders weighed worse-than-expected manufacturing data against a better-than-expected report on weekly jobless claims.

The Dow Jones Industrial Average was last up 0.1% at 18,419.30 points, the S&P 500 was flat at 2,170.86 points and the Nasdaq 100 grew 0.27% to 4,783.94 points.

Oil prices plummeted after official data on Wednesday showed weekly crude inventories rose more than expected, adding to worries about the global supply glut.

West Texas Intermediate was last down 2.69% at $43.53 per barrel and Brent declined 2.47% to $45.76 per barrel.

On the data front, the Labor Department said initial jobless claims increased 2,000 to a seasonally adjusted 263,000 in the week ended 27 August, compared to analysts’ forecasts of 265,000. The previous week’s reading was unrevised.

Continuing jobless claims rose by 14,000 to 2.16m in the week ended 20 August.

“The low level of initial claims shows that workers are not losing their jobs in large numbers, while the low level of continuing claims indicates that those workers who do get laid off are likely finding employment and are therefore leaving the unemployment insurance rolls, outside of the manufacturing states mentioned above,” said Barclays Research.

The figures come ahead of the all-important US non-farm payrolls report on Friday, which will be closely monitored after Federal Reserve chair Janet Yellen said the next interest rate hike depends on the strength of incoming data.

Meanwhile, Markit’s final US manufacturing purchasing managers’ index fell to 52.0 in August from 52.9 the month before and the flash estimate of 52.1.

Still, it remained above the 50.0 mark that separates contraction from expansion.

Separate figures from the Institute for Supply Management showed growth in the US economy’s manufacturing sector slipped a lot more than expected in August, moving into contraction territory.

The ISM index of national factory activity fell to 49.4 from 52.6 in July, missing expectations for a reading of 52.0.

Elsewhere, China’s official manufacturing PMI rose to 50.4 in August from 49.9 a month earlier. Analysts had expected no change to the reading.

The Caixin China manufacturing PMI, a separate private gauge of activity in the sector, dropped to 50.0 in August from 50.6 in July.

The official PMI for non-manufacturing in China was also released, showing a drop to 53.5 in August from 53.9 in July.

In corporate news, Campbell Soup shares plunged 6.29% after reporting an unexpected drop in quarterly profit and providing a full year outlook that fell short of market forecasts.

Vera Bradley shares jumped 11.30% as the luxury handbag maker posted quarterly revenue and net income that beat analysts’ estimates.

Cloud computing software firm Salesforce.com slumped 4.42% after issuing weaker-than-expected guidance for the current quarter late on Wednesday.