Stocks end mixed on weak jobs data, rate concerns
Stocks finished the day mixed Thursday as a weaker-than-expected report on jobless claims, concerns about interest rate hikes and geopolitical threats weighed on investor sentiment.
The Dow Jones industrial average closed down 19.71 points, 0.1%, to 17,049.00.
The Standard & Poor's 500 index ended up 1.76 points, 0.1%, to 1997.45, while the tech-laden Nasdaq composite index finished up 5.28 points, 0.1%, to 4591.81.
Concerns facing the markets:
• Interest rates. Stocks have come under pressure lately as speculation grows that the Federal Reserve will begin raising interest rates sooner than expected. Fed policymakers meet next week to discuss interest rate policy.
The yield on the 10-year Treasury note was higher again as it rose to 2.55% from 2.54% Wednesday. That is up from a low of 2.33% on August 28.
• Labor market. Weekly jobless claims unexpectedly rose 11,000 to a seasonally adjusted 315,000, the highest level in 10 weeks. That comes on top of last week's disappointing jobs report that employers only added 142,000 jobs in August, the fewest monthly gain of 2014.
• Terrorism. The anniversary of the 9/11 terror attacks and a renewed focus on terrorism and the emerging threat from ISIL was also in focus. President Obama outlined his plan to combat the threat including U.S. airstrikes in a speech Tuesday night.
In corporate earnings news:
• Lululemon (LULU) shares jumped 13.5% as the yoga-wear maker reported profit that beat estimates and raised its forecast for the year.
• Kroger (KR) posted earnings that beat Wall Street estimates and raised its sales outlook. Shares rose 0.7%.
• RadioShack (RSH) reported dismal earnings and said it may run out of cash if it's unable to obtain funding. The company also said it is actively exploring options for overhauling its balance sheet. Investors reacted positively to the idea of an overhaul, sending shares up 2.1%.
Overseas, European markets also fell as Britain's FTSE index was down 0.5% to 6799.62 and Germany's DAX index fell 0.1% to 9691.28.
Asian markets were mixed. Japan's Nikkei 225 index added 0.8% to 15,909.20 and Hong Kong's Hang Seng index fell 0.2% to 24,662.64.
Stocks rose Wednesday as a rebounding Apple led a surge in tech stocks. The Dow ended up 0.3% to 17,069 and the S&P 500 gained 0.4% to 1996. The Nasdaq jumped 0.8% to 4587.