U.S. Stocks Trim Losses
NEW YORK (MarketWatch) -- U.S. stocks turned mixed Thursday as economic data helped counter concerns about the economy's malaise after credit-card issuer Capital One Financial Corp. undershot its profit forecast and major retailers reported weak December sales.
"Today's U.S. reports bucked the market trend toward gloom and doom, with a big drop in claims and jumbo surge in wholesale sales that bode well for the economy," said analysts at Action Economics.
Down about 100 points early Thursday, the Dow Jones Industrial Average was more recently up 8.5 points at 12,743.8, with 17 of its 30 components higher, the gains led by Boeing Co. , which was up 2.6%.
Blue-chip decliners were led by American Express Co. , off 2%.
The S&P 500 slipped 1.71 points to 1,407.42, while the Nasdaq Composite weakened by 11.38 points to 2,463.17.
Equities trimmed their early losses after the Commerce Department reported the sales of U.S. wholesalers gained 2.2% in November, the biggest jump in two years.
Volume on the New York Stock Exchange had reached 390 million shares, with declining stocks outpacing advancing issues 5 to 4. On the Nasdaq, 549 million shares had changed hands, and decliners topped advancers, by a 4-to-3 ratio.
The government reported weekly initial claims for state unemployment benefits fell to a two-month low, while continuing claims climbed to two-year highs. .
In early trading on the New York Mercantile Exchange, gold futures declined 1% to near $872 an ounce, cooling off on the heels of the precious metal's strong run this week.
Crude-oil futures were down 2%, putting pressure on energy stocks but bolstering the fortunes of other categories.
U.S. stocks had climbed Wednesday on a late-session buying binge in what many viewed as an oversold market, with the Nasdaq Composite chalking up its first gain of the year.
Of interest ahead is a speech on the economy by Federal Reserve Chairman Ben Bernanke, slated to start at 1 p.m. Eastern.
Retailers unveiled data on their December same-store sales performance, and some -- Pacific Sunwear , Limited Brands and Stein Mart -- pared their quarterly profit outlooks accordingly.
Wal-Mart Stores said profit will feel some pressure from higher interest rates in the fourth quarter, but it reaffirmed its fourth-quarter earnings view.
Capital One shares dropped 9%. The credit-card issuer cut its earnings forecast for the year by more than 20%, noting it plans to take a $1.9 billion provision in the fourth quarter for loan losses.
Investors also will consider a Wall Street Journal report that Citigroup and Merrill Lynch & Co. are both negotiating further capital injections from overseas investors.
By Kate Gibson