S&P 500 manage to eke out minor gains
US stocks ended in a mixed mode once again on Thursday, 09 January 2014. The S&P 500 index eked out a marginal gain on Thursday, while the Dow Jones Industrial Average dropped. Equities displayed early strength, but sellers were quick to knock the indices off their opening highs. The Nasdaq outperformed out of the gate, but ultimately led the broader market into the red.
The Dow Jones Industrial Average lost 17.98 points, or 0.1% to 16,444.76. The S&P 500 index % ended the day fractionally higher at 1,838.13. The Nasdaq Composite slipped 9.42 points, or 0.2% to 4,156.19.
Individual sectors ended with an even split as five groups posted gains while the other five ended lower. Dow was weighed down by losses for Verizon Communications and AT&T, both dropping 2%.
The technology sector was pressured by several top components as Apple, Cisco Systems and Google.
At Wall Street, the weekly initial claims level fell to 330,000 from an upwardly revised 345,000 (from 339,000) while the consensus expected the claims level to fall to 338,000. It was lowest level of initial clams in five years. The Labor Department stressed that the post-holiday period tends to be volatile as businesses dismiss their temporary work staff. Also, the December Challenger Job Cuts report pointed to a 6.0% decline in planned job cuts.
Arguably the paramount economic report of the month comes with Friday morning's U.S. jobs report. The key non-farm payrolls figure of the Labor Department's employment report is expected to show a rise of around 200,000 in December. Any figure that deviates significantly from the consensus forecast is likely to be a markets-mover. Trading in gold, silver and other markets could become volatile in the immediate aftermath of the report's release at 8:30 a.m. eastern standard time.
Thursday's European Central Bank monthly meeting saw the ECB leave interest rates unchanged. However, ECB President Mario Draghi did provide some comments at his press conference that were deemed as being titled toward the dovish side of ECB monetary policy. The ECB announcement and Draghi's press conference produced no major market movements, but did pressure the Euro currency a bit.
In overnight news, China's consumer price inflation was reported under control in December, rising at 2.5% year-on-year, and down from a 3% rate in November. This news assuaged some fears that inflationary pressures were heating up in the world's number-two economy.
In other news from overseas Thursday, German industrial output rose by 1.9% in November after falling 1.2% in October. Also, Euro zone consumer confidence rose to a more-than-two-year high in December, according to a report by the European Commission. These reports continue a trend of generally upbeat economic data coming out of the European Union.
Bullion prices ended a choppy, two-sided trading session with modest gains on Thursday, 09 January 2014. Traders are awaiting Friday morning's all-important U.S. jobs report for direction. Gold prices scored their first gain in four sessions on Thursday as investors looked to data on the economy for cues on the precious metal's outlook.
Gold for February delivery tacked on $3.90, or 0.3%, to settle at $1,229.40 an ounce on the Comex division of the New York Mercantile Exchange after touching lows under $1,223. Prices had tallied losses of roughly 1% over the past three trading sessions. March silver also added 14 cents, or 0.7%, to end at $19.68 an ounce after Wednesday's 1.3% decline.
Crude Oil futures sank to their lowest in eight months on Thursday, 09 January 2014 as the market awaited hints on the outlook for energy demand from monthly employment data due Friday. Crude-oil futures finished lower Thursday, at their lowest since May, 2013.
February crude oil shed 67 cents, or 0.7%, to settle at $91.66 a barrel on the New York Mercantile Exchange.
Participation was on the light side as only 683 million shares changed hands on the floor of the New York Stock Exchange.
Indian ADRs ended mixed on Thursday. In the IT space, Infosys was up 0.7% at $56.15 and Wipro was up 0.08% at $12.44. In the banking space, ICICI Bank was up 0.06% at $36.11 and HDFC Bank shed 1.67% at $33.59. In the other sectors, Tata Motors shed 0.47% at $29.96 and Dr Reddys Laboratories gained 4.07% at $42.24.
Tomorrow's data will also focus on jobs with December nonfarm payrolls set to be reported at 8:30 ET. Separately, the November Wholesale Inventories report will be released at 10:00 ET.
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