US close: Stocks fall on trading lull ahead of Christmas break
US stocks fell on Thursday as investors weighed mixed economic data ahead of the Christmas break.
The Dow Jones Industrial Average closed down 0.12% to 19,918.88 points, the S&P 500 fell 0.19% to 2,260.96 points and the Nasdaq declined 0.44% to 5,447.42 points.
Oil prices gained with West Texas Intermediate crude up 0.47% to $52.74 per barrel and Brent up 0.82% to $54.91 per barrel at 2050 GMT.
IG’s Joshua Mahony: “Santa’s presents seem to be a little thin on the ground in the lead up to Christmas, with Trump having already raided the supplies for his post-election victory lap. Today’s gradual deterioration in the Dow further diminishes the chance that we would see 20,000 hit before Christmas Day.”
On the data front, the Commerce Department said the US economy grew more than initially estimated in the third quarter.
Gross domestic product grew at an annual rate of 3.5%, up from an earlier estimate of 3.2% and compared to 1.4% growth in the second quarter. Economists had been expecting GDP to be revised up to 3.3%. It marked the strongest quarterly pace of growth in two years
Consumer spending – which makes up more than two-thirds of economic activity – rose at an annual rate of 3%, up from the previous estimate of 2.8%, while business investment was up 1.4% compared to the prior estimate of a 0.1% increase.
Naeem Aslam, chief market analyst at Think Markets, said “The reality is that the US economy has performed much better and it is on solid footing, but the Fed may not celebrate this news too much. The reason is that they certainly do not want the market to think that the Fed will be very aggressive in hiking the rate as that would create serious issues in emerging markets due to the dollar strength.”
Separately, the Labor Department revealed the number of Americans filing for unemployment benefits rose more than expected last week.
US initial jobless claims were up 21,000 from the previous week’s unrevised level to 275,000, which was more than the 2,000 increase expected by economists.
The core personal consumption expenditure deflator, the Federal Reserve’s preferred measure of inflation, held at an annual rate of 1.4%, missing forecasts of 1.5%.
Paul Ashworth, chief US economist at Capital Economics, said: “That suggests the Fed will be in no hurry to follow up this month’s rate hike with another early in the New Year. Admittedly, we anticipate four 25p hikes next year, but expect three of those in the second half of the year.”
US durable goods orders slipped 4.6% in November compared to a 4.8% increase in October and economists’ forecasts for a 4.8% drop, the Commerce Department said.
A measure of national economic activity showed US factory production softened in November.
The Chicago Fed national activity index fell to negative 0.27 in November from an upwardly revised negative 0.05 in October, worse than the -0.10 reading expected by analysts.
In company news, Bed Bath & Beyond Inc. shares declined after the retailer’s reported earnings and an outlook that disappointed investors on late Wednesday.
Red Hat Inc.’s tanked after the software company issued a worse-than-anticipated outlook and announced the resignation of chief financial officer Frank Calderoni.
Rite Aid Corp. was on the back foot after the drugstore chain posted profit and sales and trailed forecasts.
Chip maker Micron Technology Inc. advanced after posting earnings on Wednesday that exceeded estimates.
Packaged-foods giant ConAgra Brands Inc. shares jumped after its profits beat forecasts.
Dow Jones - Risers
Verizon Communications Inc. (VZ) $53.65 1.28%
Chevron Corp. (CVX) $118.77 0.73%
Exxon Mobil Corp. (XOM) $90.87 0.65%
McDonald's Corp. (MCD) $123.72 0.44%
3M Co. (MMM) $179.20 0.43%
Caterpillar Inc. (CAT) $94.12 0.32%
Merck & Co. Inc. (MRK) $59.58 0.25%
Procter & Gamble Co. (PG) $84.47 0.23%
JP Morgan Chase & Co. (JPM) $86.89 0.16%
Unitedhealth Group Inc. (UNH) $161.53 0.15%
Dow Jones - Fallers
Wal-Mart Stores Inc. (WMT) $69.59 -2.32%
Home Depot Inc. (HD) $135.43 -1.02%
American Express Co. (AXP) $74.58 -0.98%
General Electric Co. (GE) $31.81 -0.96%
Apple Inc. (AAPL) $116.29 -0.66%
Goldman Sachs Group Inc. (GS) $240.17 -0.55%
E.I. du Pont de Nemours and Co. (DD) $75.07 -0.52%
Travelers Company Inc. (TRV) $122.05 -0.37%
Visa Inc. (V) $77.90 -0.31%
Nike Inc. (NKE) $52.14 -0.31%
S&P 500 - Risers
Micron Technology Inc. (MU) $23.19 12.68%
Alexion Pharmaceuticals Inc. (ALXN) $125.85 5.77%
CF Industries Holdings Inc. (CF) $30.11 4.19%
ConAgra Brands Inc (CAG) $39.29 3.39%
Marathon Petroleum Corporation (MPC) $50.34 2.76%
Regeneron Pharmaceuticals Inc. (REGN) $372.38 2.01%
Mosaic Company (MOS) $29.35 1.98%
Celgene Corp. (CELG) $117.87 1.74%
Humana Inc. (HUM) $202.98 1.57%
Western Digital Corp. (WDC) $70.19 1.40%
S&P 500 - Fallers
Red Hat Inc. (RHT) $68.71 -13.89%
Bed Bath & Beyond Inc. (BBBY) $41.38 -9.17%
Nordstrom Inc. (JWN) $48.24 -5.80%
Dollar Tree Inc (DLTR) $79.31 -5.65%
Gap Inc. (GPS) $22.48 -5.35%
GameStop Corp. (GME) $25.06 -5.04%
Kohls Corp. (KSS) $49.94 -4.97%
Staples Inc. (SPLS) $9.26 -4.54%
Urban Outfitters Inc. (URBN) $28.58 -4.48%
Target Corp. (TGT) $73.74 -4.40%
Nasdaq 100 - Risers
Micron Technology Inc. (MU) $23.19 12.68%
Alexion Pharmaceuticals Inc. (ALXN) $125.85 5.77%
Regeneron Pharmaceuticals Inc. (REGN) $372.38 2.01%
Celgene Corp. (CELG) $117.87 1.74%
Incyte Corp. (INCY) $101.49 1.73%
Western Digital Corp. (WDC) $70.19 1.40%
Skyworks Solutions Inc. (SWKS) $78.15 1.40%
Applied Materials Inc. (AMAT) $33.01 1.32%
Nvidia Corp. (NVDA) $107.11 1.21%
Intuitive Surgical Inc. (ISRG) $637.58 1.16%
Nasdaq 100 - Fallers
Dollar Tree Inc (DLTR) $79.31 -5.65%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $43.38 -3.45%
NetEase Inc. Ads (NTES) $217.10 -2.70%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $257.31 -2.14%
Tractor Supply Company (TSCO) $76.21 -1.85%
Walgreens Boots Alliance, Inc. (WBA) $84.27 -1.84%
Biomarin Pharmaceutical Inc. (BMRN) $83.54 -1.78%
Citrix Systems Inc. (CTXS) $90.45 -1.75%
Yahoo! Inc. (YHOO) $38.50 -1.66%
Priceline Group Inc (PCLN) $1,481.34 -1.62%