U.S. stocks mixed on Fed outlook, Ukraine concerns; Dow slides 0.12%
Investing.com -
Investing.com - U.S. stocks ended Thursday mixed on fears that conflicts in Ukraine and in the Middle East may slow recovery, though investors shrugged off disappointing weekly jobless claims, viewing the data as glitch in an otherwise sustained U.S. recovery that won't alter monetary policy.
At the close of U.S. trading, the Dow 30 fell 0.12%, the S&P 500 index rose 0.12%, while the NASDAQ Composite index rose 0.12%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was down 0.62% at 12.80.
The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Sept. 6 increased by 11,000 to a 10-week high of 315,000 from the previous week's revised total of 304,000.
Analysts had expected jobless claims to fall by 4,000 to 300,000 last week.
Stocks brushed off the news, as the labor market has shown consistent improvement this year.
Furthermore, the labor market often appears weaker than it really is in August due to seasonal factors, while factory, service-sector, gross domestic product and other data all point to a U.S. recovery that is gaining steam, with hiccups here and there.
The Federal Reserve will conclude a two-day policy meeting next week, and markets expect the monetary authority to cut its monthly bond-buying program by $10 billion to $15 billion, with some hoping for language hinting at when interest rates may rise.
A Federal Reserve Bank of San Francisco report published on Monday suggested rate hikes may come sooner than markets may be expecting, though borrowing costs are still expected to remain low for some time to come and remain bullish for stocks.
Geopolitical issues allowed for mixed trading.
U.S. President Barack Obama said earlier Washington will join the European Union and slap fresh sanctions on Russia, accusing it of meddling in neighbor Ukraine's internal conflict.
Sanctions will target Russia's financial, energy, and defense sectors and will take effect on Friday, when further details will be released.
The move rekindled fears that the conflict may drag on U.S. recovery, while U.S. plans to strike Islamic State targets in Syria also watered down stock prices.
Leading Dow Jones Industrial Average performers included Cisco Systems Inc (NASDAQ:CSCO), up 0.98%, J P Morgan Chase & Co (NYSE:JPM), up 0.89%, and Pfizer Inc (NYSE:PFE), up 0.63%.
The Dow Jones Industrial Average's worst performers included Merck & Company Inc (NYSE:MRK), down 1.06%, Visa Inc (NYSE:V), down 0.85%, and Nike Inc (NYSE:NKE), down 0.80%.
European indices, meanwhile, ended the day lower.
After the close of European trade, the DJ Euro Stoxx 50 fell 0.33%, France's CAC 40 fell 0.22%, while Germany's DAX fell 0.09%. Meanwhile, in the U.K. the FTSE 100 fell 0.45%.
On Friday, the U.S. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
The U.S. is also to release what will be closely watched preliminary data on consumer sentiment.
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