By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market fell on
Thursday, as a spike in oil prices and softer-than-expected
economic data dented sentiment on Wall Street.
As unrest in Iraq intensified, concerns over supply sent crude
oil prices soaring. While energy companies benefited from higher
oil prices, airline companies were hit hard.
Economic data came in below analysts' forecast, weighing on
sentiment. Weekly jobless claims ticked up, rather than the slight
drop that was expected. Retail sales in May rose by less than
forecast; however, the increase in April was revised sharply
upward.
The S&P 500 (SPX) fell for the third straight session,
closing 13.77 points, or 0.7%, lower at 1,930.12.
The Dow Jones Industrial Average (DJI) built on Wednesday's
losses and finished 109.69 points, or 0.7%, lower at 16,734.19. The
last time the blue-chip index fell for two consecutive sessions was
almost a month ago.
The Nasdaq Composite (RIXF) ended the day down 34.30 points, or
0.8% at 4,297.63.
Read the recap of MarketWatch's live blog of today's
stock-market action.
Joe Peta, managing director at Novus, a financial technology
company, said that economic data, even when it meets expectations,
is not good enough.
"Wall Street's expectations for growth acceleration in the
second half of the year are too optimistic and we are just not
seeing that in data so far," Peta said.
The number of Americans who applied for unemployment benefits
last week increased slightly but remained near a post-recession
bottom, indicating little change in a gradually improving U.S.
labor market.
Sales at U.S. retailers rose last month on strong demand for
cars, trucks and home-improvement products, but spending tapered
off at many other retailers after a big bump in demand in
April.
In corporate news, shares of Lululemon Athletica Inc. (LULU)
slumped 16% after the maker of high-end yoga gear lowered its
outlook for the year and reported a drop in profit for the first
quarter.
Restoration Hardware Holdings Inc. (RH) surged 13% after the
upscale home-furnishing retailer late Wednesday reported it swung
to first-quarter profit from a loss a year ago.
Land's End Inc. (LE) shares rallied 8.2% after the retailer said
profit rose nearly 50% in its first quarter as an independent
company after being spun off from Sears Holdings Corp. (SHLD)
Shares in airline companies, hit badly on Wednesday following a
profit warning from Deutsche Lufthansa AG, tumbled again on
Thursday because of higher oil prices. Delta Air Lines, Inc (DAL)
dropped 5.4%. Southwest Airlines Co. (LUV) fell 4.5%, American
Airlines Group, Inc. (AAL) lost 4.9%.
Energy companies, which also tend to react to price swings in
oil, rallied on Thursday. Denbury Resources Inc (DNR) was up 1.9%,
Chesapeake Energy Corporation (CHK) rose 1.5%.
In other financial markets, Asian stocks closed mostly lower,
while European equities finished little changed. Gold (GCQ4)
rose.
Crude oil futures topped $106 a barrel on Thursday, with the
U.S. benchmark marking its highest close in almost nine months as
unrest in Iraq intensified, raising concerns about potential
disruptions to the nation's oil supplies.
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