By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market wobbled in early
trade on Thursday, trading in and out of positive territory, as
investors weighed a surprise jump in weekly jobless claims against
a smaller-than-expected drop in durable-goods orders.
All attention is on Federal Reserve Chairwoman Janet Yellen who
begins her testimony before the Senate Banking Committee.
The S&P 500 (SPX) was 3 points, or 0.2% lower at 1,841.76,
pulling away from recent intraday highs above a key technical level
of 1,850.
The Dow Jones Industrial Average (DJI) dropped 28 points, or
0.2% to 16,171.05.
The Nasdaq Composite (RIXF) slipped a point to 4,290.36.
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Investors weighed mixed economic reports. The number of people
applying for unemployment benefits rose last week to match the
highest level of 2014, suggesting that progress in a gradually
recovering U.S. labor market has slackened off. However, the
average of new claims over the past month, usually a more reliable
gauge than the up-and-down weekly number, was unchanged at
338,250.
A slowdown in orders over the past few months by American
manufacturers was reflected in the durable-goods orders reading for
January, however the drop was less than forecast. Orders for U.S.
durable goods fell 1.0% in January as demand tapered off for most
big-ticket items except military hardware, the government said
Thursday. Economists surveyed by MarketWatch had expected orders to
fall 2.5%.
Markets will be keeping a close eye on Capitol Hill, as the
Fed's Yellen begins her testimony to the Senate Banking Committee
about the economic outlook and monetary policy.
In corporate news, Best Buy Co Inc. (BBY) shares jumped 7.4%
after the retailer said it swung to a fourth-quarter profit,
beating forecasts.
J.C. Penney Co. (JCP) jumped 22%, after making gains late
Wednesday on better-than-expected results.
Tesla Motors Inc. (TSLA) was up 2.3% to $257.76 after the
electric-car maker said it is going to build a $5 billion battery
factory somewhere in the U.S. southwest and is selling $1.6 billion
in debt. Merrill Lynch reaffirmed its $65 price target on
Tesla.
Overseas, Asian markets were mixed and European stocks fell.
Gold prices rose as political turmoil in Ukraine prompted
safe-haven buying.
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