For the day, the Dow ended lower by 49.84 points (0.4%) at 13,860.58. Nasdaq ended lower by 0.18 points (0.4%) at 3,142.13. S&P 500 ended lower by 3.85 points (0.3%) at 1,498.11.
Responding favorably to the Congressional compromise on tax rates, the Dow Jones Industrial Average surged 5.8% and recorded its best January since 1989.
Among the ten economic sectors, consumer discretionary and industrials were hardest hit and telecommunications and technology were the best performers. Seventeen out of thirty Dow components ended lower led by Intel.
Among major stocks under focus, Quarterly earnings reported by major companies are also receiving mixed reaction. Nasdaq components, Qualcomm and MasterCard, beat their respective estimates, and the stocks are climbing in reaction. Qualcomm rose 4.9% while MasterCard added 0.5%.
Facebook shares fell after the social-networking site reported a steep drop in fourth-quarter profit.
Among earnings disappointments today at Wall Street, ConocoPhillips and UPS missed on the bottom line and UPS issued cautious full-year 2013 earnings guidance. Investors use UPS as a gauge of the economy because it handles goods as varied as auto parts and pharmaceuticals.
In today's economic data at Wall Street, weekly initial claims were reported at 368,000. This figure supports the notion that the lower readings over the prior two weeks were primarily the result of seasonal adjustment problems. Today's number drives initial claims right back to the 350,000-400,000 range where they have been bounded for most of the last year.
The Chicago purchasing managers index, meanwhile, rose to 55.6% in January to mark the best performance in nine months. Personal income soared in December by its fastest pace in eight years, while consumer spending rose 0.2%, in line with expectations. However, the notable rise in personal income was due to a surge in personal income on assets as investors chose to lock in a lower capital gains tax rate ahead of the New Year. Elsewhere, the personal income report stood out as the December increase of 2.6% was well ahead of the 0.7% rise expected.
The market place is now focusing on Friday morning's U.S. employment report for January. The key non-farm payrolls figure is forecast to come in at up 165,000 versus up 155,000 the previous month. The unemployment rate is forecast at 7.8%, which is unchanged from the previous month.
European stocks were weaker on Thursday and the Euro currency fell following a reported drop in German retail sales and rise in German unemployment. Italian government bond yields rose Thursday to multi-week highs.
The dollar index, which weighs the strength of the dollar against a basket of six other currencies fell by 0.2% on Thursday.
Bullion metal prices ended substantially lower on Thursday, 31 January 2013. Prices fell for first time in three days following profit taking and ahead of tomorrow's crucial job report. Prices had risen yesterday after weaker than expected fourth quarter GDP data at US and a weak dollar pushed them up.
Gold for February delivery ended lower by $19.6 or 1.2%, to settle at $1,662 an ounce on the Comex division of the New York Mercantile Exchange on Thursday.
Gold lost 0.8% for January 2013. March silver closed lower by 83 cents, or 2.6%, at $31.35 an ounce on Thursday. Silver ended January 2013 higher by 3.5%.
Crude-oil prices ended moderately lower on Thursday, 31 January 2013 at Nymex. Prices fell following weaker than expected initial claims data that hit the wires at Wall Street. Prices registered good gains for January though. Crude for March fell $0.45 cents, or 0.5%, to settle at $97.49 a barrel on the New York Mercantile Exchange on Thursday. Prices gained 6.2% in January 2013.
For every seven stocks rising roughly eight fell on the New York Stock Exchange, where 933 million shares traded. Composite volume surpassed 3.9 billion. Composite volume approached 1.8 billion.
Indian ADRs ended lower on Thursday. In the Banking space, ICICI Bank was down 1.3% and HDFC Bank was down 1.4%. In the IT space, Infosys was down 0.2% and Wipro was down 0.1%. In the other space, Sterlite was down 2.2%, Tata Motors was down 0.8%. Dr Reddys was down 1.2%. .
For tomorrow, economic data will be non farm payrolls and unemployment rate and the hourly earnings. Earning reports will continue to pour in.
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