By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks shifted mostly lower after
a slight strengthening in the U.S. dollar hit commodities and
related stocks, denting the enthusiasm created when jobless claims
fell.
"The equities market started off on a positive footing, with
modest gains, due to the fact that weekly jobless claims finally
fell below the 450,000 level for the first time in several months,"
said Michael Sheldon, chief market strategist at RDM Financial
Group.
"The dollar continued to move lower, helping commodity prices
early on, however a very -- and you can emphasize the word 'very'
-- modest bounce in the dollar has taken some of the wind out of
the sails of commodity-related stocks," Sheldon added.
After rising to within a few points of the psychologically
significant 11,000 level, the Dow Jones Industrial Average (DJI)
was off 26.22 points, or 0.2%, at 10,941.43, with 20 of its 30
components in retreat.
The S&P 500 (SPX) fell 2.82 points, or 0.3%, to 1,157.17,
with telecommunications and natural-resource firms down the most
among its 10 industry groups.
The Nasdaq Composite (RIXF) rose 1.18 point to 2,381.84.
Decliners ran just ahead of advancers on the New York Stock
Exchange, where volume came to 365 million as of noon Eastern
time.
The dollar recovered most of its losses on the day against the
euro, which had pushed to a new eight-month high above $1.40 after
European Central Bank President Jean-Claude Trichet's remarks were
deemed not excessively bearish.
The dollar index (DXY), which contrasts the greenback with six
currency rivals, stood at 77.382, off from its 77.397 level in late
New York trade Wednesday.
The weekly jobless-claims data came a day ahead of the
government's monthly employment report, with economists expecting
the unemployment rate to climb to 9.7% in September from 9.6% in
August.
Retailers including Abercrombie & Fitch Co. (ANF) and
Limited Brands Inc. (LTD) reported better-than-anticipated monthly
sales.
PepsiCo Inc. shares (PEP) fell after the beverage company
lowered its earnings forecast. .
After the close, Alcoa Inc. (AA) releases third-quarter
financial results, with the aluminum manufacturer the first of the
Dow's 30 components to report.