NEW YORK - The stock market held close to its all-time high Thursday amid optimism that the economy is set to strengthen.
The Standard & Poor’s 500 index fell 2.13 points, or 0.1 percent, to 1,888.77. The index closed at an all-time high of 1,890.90 a day earlier after rising for four-straight days. The Dow Jones industrial average fell 0.45 point, or less than 0.1 percent, to 16,572.55. The Nasdaq composite fell 38.72 points, or 0.9 percent, to 4,237.74.
Stocks are on course for their best weekly gain in seven weeks after investors got more encouraging news on the economy. A survey showed that U.S. service firms increased their business more quickly last month as new orders rose. Separate reports earlier in the week had shown manufacturing strengthening, hiring picking up and sales of cars and trucks rising.
The news came ahead of the government’s monthly jobs report, which will be published today. Investors expect to see strong growth in hiring. Economists are forecasting that the U.S. economy added200,000 jobs in March, according to FactSet. That would be the biggest gain in hiring since November.
“If you have a decent economy, a modestly growing economy, that’s supportive of corporate earnings and stocks can continue to benefit from that,” said John Fox, director of research at Fenimore Asset Management.
Stocks started the day higher after getting a lift from a report on the U.S. service sector, a broad category of businesses that includes banks, transportation and construction.
The Institute for Supply Management’s nonmanufacturing index rose to 53.1 in March, up from 51.6 in February, indicating that growth in the service sector is picking up. The survey also showed an increase in hiring.
“Going into the employment report, a lot of people aren’t anxious to open new positions,” said J.J. Kinahan, chief strategist with TD Ameritrade. “They don’t want to be taken by surprise.”
Barnes & Noble was among the day’s big losers.
The stock fell $2.99, or 13.5percent, to $19.12 after Liberty Media said it was cutting its stake in the company. Liberty Media, the investment company controlled by billionaire John Malone, gave Barnes & Noble a lifeline in 2011 when it bought a 17 percent stake in the company.
Biotechnology stocks also fell.
After surging at the start of the year, biotech stocks have become volatile over concerns about the cost of the drugs they’re developing. The S&P’s index of biotechnology stocks fell 1.6 percent, paring its gains for the year to about 1.2 percent. The index had been up as much as 13 percent by the end of February.
Google’s stock split took effect Thursday.
The technology company’s new Class C nonvoting shares rose $2.74, or 0.5 percent, to $569.74. Its Class A shares, which retained voting rights, rose $3.40, or 0.6 percent, to $571.50. The Class A shares, which have been traded since the company went public nearly a decade ago, now trade under the ticker symbol “GOOGL.” The Class C shares inherited the “GOOG” ticker symbol.
Business, Pages 28 on 04/04/2014