NEW YORK - The stock market wavered for a second day Thursday as investors weighed disappointing news from the retail industry against more positive signals on the U.S. economy.
Investors were looking ahead to today’s jobs report, as well as the start of corporate earnings season.
The Dow Jones industrial average fell 17.98 points, or 0.1 percent, to 16,444.76. The S&P 500 added 0.64 point, or 0.03 percent, to 1,838.13, and the Nasdaq composite lost 9.42 points, or 0.2 percent, to 4,156.19.
Retailers were among the hardest-hit stocks Thursday.
Bed Bath & Beyond plunged $9.93, or 13 percent, to $69.75and Family Dollar fell $1.37, or 2 percent, to $64.97, making them the biggest decliners in the S&P 500. Both companies cut their earnings forecasts after a disappointing Christmas season.
The reports of tepid sales disappointed investors, who have been seeing signs for several weeks that the U.S. economy was improving and that shoppers were returning to the malls.
It appears the economy, while improving, still has some weak spots.
L Brands, which owns Bath and Body Works and Victoria’s Secret, reported that its sales rose less than analysts had expected. The company also cut its full-year outlook, echoing Bed Bath & Beyond and Family Dollar. L Brands fell $2.44, or 4percent, to $57.75.
“The consumers are supposed to be the fuel of this economy, and it doesn’t appear to be happening,” said Ian Winer, director of trading for Wedbush Securities.
Even the bright spots in the retail industry had caveats. Department store giant Macy’s jumped $3.96, or 8 percent, to $55.80 after the company forecast a 2014 profit that was above Wall Street’s forecasts. Macy’s also said it would eliminate 2,500 jobs as part of a reorganization that aims to save $100 million a year.
The disappointing news from retailers was more than enough to offset another positive report on the U.S. economy.
The number of Americans seeking unemployment benefits fell by 15,000 last week to 330,000. The drop was slightly bigger than economists predicted, according to Fact Set, a financial-data provider.
The claims report sets the stage for the government jobs report for December, which will be released this morning. Economists expect employers added 196,000 jobs last month and the unemployment rate remained at 7 percent.
Stocks surged into the end of 2013, but the momentum hasn’t continued into the first trading days of 2014. The Dow and S&P 500 are down less than 1 percent this year.
In company news, Ford rose 30 cents, or 2 percent, to $15.84 after announcing an increase in its quarterly dividend to 12.5 cents per share from 10 cents per share.
Business, Pages 28 on 01/10/2014