US stocks were little changed as most retailers slumped and investors focused on tomorrow’s jobs report for clues to whether the Federal Reserve will accelerate the pace of stimulus cuts.
The S&P 500 rose less than 1 point to 1,838.13 at 4 p.m. in New York. The Dow Jones Industrial Average dropped 17.98 points, or 0.1%, to 16,444.76. About 6.7 billion shares changed hands on U.S. exchanges, 11% above the 30-day average.
“You could be seeing some anticipation that the jobs number tomorrow could be really high,” Walter Todd, who oversees about $950 million as chief investment officer of Greenwood Capital Associates LLC in Greenwood, South Carolina, said by phone to Bloomberg. “That could change the timetable for the Fed’s ultimate exit from quantitative easing.”
Initial jobless claims data showed yesterday applications for U.S. unemployment benefits declined by 15,000 to 330,000 in the period ended January 4. The median forecast of economists estimated 335,000. It should be pointed out that the data could be volatile after the holidays as temporary workers are dismissed, a Labor Department spokesman said as the report was released.
A report from the ADP Research Institute on Wednesday showed companies added 238,000 workers in December, the biggest increase since November 2012. A Labor Department report tomorrow may show total payrolls rose by 197,000 last month according to Bloomberg.
In corporate news, earnings reporting season unofficially started after Thursdays closing bell, when Alcoa posted fourth-quarter earnings growth that slightly missed expectations. The aluminum producers stock fell 1.3% Thursday, then declined another 2.8% in after-hours trading.
Intercept Pharmaceuticals added 281% to $275.87. The company uses obeticholic acid, or OCA, to treat nonalcoholic steatohepatitis, or NASH, a liver disease in which people who don’t drink or drink very little alcohol get liver damage that resembles that of heavy drinkers. About 2% to 5% of Americans have the disease, according to the National Institutes of Health.
Twitter Inc. dropped 3.8% to $57.05, extending its losses to a fourth straight day. The owner of the microblogging website has lost 17% since January 3.
Ford Motor Co. climbed 1.9% to $15.84. The auto company boosted its quarterly dividend for common shares and the stock held by its founding family to 12.5 cents.
Retailers retreated 0.2% as a group. Companies from L Brands, which owns the Victoria’s Secret and Bath & Body Works brands, to discount chain Family Dollar cut profit forecasts, showing the price war that marked the holiday season is taking a toll. However, Macy’s jumped 7.6%, the most in the S&P 500, to $55.80. J.C. Penney climbed 3.7% to $7.64 after Piper Jaffray Cos. recommended buying the shares. The company lost 10% on Wednesday as it published a two-paragraph statement on holiday results that didnt include sales data.