US close: Stocks fall on China, rate hike caution

Stocks markets in the US finished lower on Thursday as risk appetite was hit by poor Chinese trade data and continuing low levels of US joblessness that reinforced the impression that December may see an interest hike from the Federal Reserve.

Amid further conflicting influences of a lower dollar and oil creeping higher, the main stock indices all erased most of their larger earlier losses, with Dow Jones Industrial Average closing 0.25% lower at 18,098.94 points, the S&P 500 down 0.31% to 2,132.55 and the Nasdaq dropping 0.49% to 5,213.33 points.

As well as hawkish Fed minutes overnight, Wall Street opened on the back of a risk-off sentiment around global markets as Chinese exports were shown to have shrunk 10% year-on-year in September, below expectations of a 3% decline, sparking concerns for the world’s second largest economy and global demand.

While prices of many natural resources were sent reeling by the China data, crude oil steadied over the course of the session having fallen when OPEC revealed September’s oil production rose to its highest level in eight years.

Not long before 1700 EDT, West Texas Intermediate was up 0.5% to $50.45 a barrel and Brent crude was 0.29% higher at $51.96.

Closely monitored ahead of a Boston speech by Fed head Janet Yellen on Friday, the Labor Department reported that jobless claims were unchanged at 246,000 in September, below the 253,000 forecast, which was the lowest reading since November 1973.

Wednesday's meeting minutes suggested the majority of Fed policymakers are ready to be persuaded to hike rates in December if data continues along current lines, so the jobless data was further grease on the tracks.

Philadelphia Fed president Patrick Harker said in a speech Thursday that the economy was doing "pretty well" and has a strong jobs market, but did not say how close the central bank was to raising interest rates.

Among companies, United States Steel was hit by the China data, while some pharma companies such as Pfizer retreated as Hillary Clinton's odds on winning the presidential race grew shorter.

Rail shipper CSX Transportation were up as it reported better than expected third quarter results.

Shares in hotels group Marriott plummeted after a rise in profits did not meet analyst expectations, whereas Delta Air Lines’ third quarter profit was above analyst expectations and so edged higher.

Dow Jones - Risers

Merck & Co. Inc. (MRK) $62.51 1.38%
Wal-Mart Stores Inc. (WMT) $68.23 1.14%
United Technologies Corp. (UTX) $99.85 0.93%
McDonald's Corp. (MCD) $115.42 0.61%
Johnson & Johnson (JNJ) $118.30 0.25%
3M Co. (MMM) $170.02 0.18%
Boeing Co. (BA) $133.38 0.17%
Verizon Communications Inc. (VZ) $50.29 -0.02%
Coca-Cola Co. (KO) $41.76 -0.05%
Travelers Company Inc. (TRV) $115.04 -0.25%