NEW YORK -- The stock market posted slight losses Thursday after European Central Bank officials decided to delay any stimulus for the struggling continent until next year. Investors also prepared for the release today of the closely watched U.S. jobs report.
Stocks had been solidly lower much of the day but did recover some of their losses after news outlets reported that the European Central Bank would consider a large stimulus package for next month.
The Dow Jones industrial average fell 12.52 points, or 0.1 percent, to 17,900.10. It was down nearly 100 points earlier in the day.
The Standard & Poor's 500 index fell 2.41 points, or 0.1 percent, to 2,071.92, and the Nasdaq composite fell 5.04 points, or 0.1 percent, to 4,769.44.
Earlier comments from European Central Bank President Mario Draghi were initially interpreted to mean the bank wouldn't act until next year, but by late Thursday, consensus was building that stimulus was imminent.
"The [central bank] and Draghi basically said, 'We don't know what we are doing yet, but when we do it next month, it's going to be big,'" said Ian Winer, head of equity trading at Wedbush Securities.
Energy stocks were among the hardest hit. The S&P 500's energy sector lost nearly 1 percent as the price of oil sank yet again. Benchmark U.S. crude fell 57 cents to close at $66.81 per barrel on the New York Mercantile Exchange on news that Saudi Arabia reduced its January prices to U.S. and Asian customers. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 28 cents to close at $69.64 on the ICE Futures exchange in London.
Bloomberg News reported that European Central Bank officials are considering a large bond-purchasing program that will include European government debt, citing unnamed central bank figures. The report followed the central bank's decision Thursday to keep its main interest rate unchanged at a record low of 0.05 percent.
Europe has been a point of worry for investors all year. The economic sanctions that Europe imposed on Russia, one of its biggest trading partners, following Russia's annexation of Crimea has taken a toll on the entire continent. Europe has teetered on the brink of recession as Germany, Europe's largest economy, has stagnated. If Europe slipped into recession, it would be its third since 2008.
In the U.S., the main focus will be the November jobs report due today. After some solid hiring data on Wednesday from private payrolls firm ADP, economists expect that employers added 225,000 jobs last month and that the unemployment rate slipped to 5.7 percent from 5.8 percent.
U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.24 percent from 2.28 percent late Wednesday.
Barnes & Noble dropped $1.21, or 5.4 percent, to $21.03 after the company terminated its commercial agreement with Microsoft for its Nook e-reader. Barnes & Noble bought out Microsoft's stake in the Nook for $120 million in cash and stock, freeing the company to spin off its Nook business down the road. Microsoft rose 76 cents, or 1.6 percent, to $48.84.
Business on 12/05/2014