By Anora Mahmudova and Wallace Witkowski, MarketWatch

Analyst: Not much change in sentiment after presidential debate

U.S. stocks on Thursday slumped as a sharp drop in oil and telecommunications shares weighed on investors' sentiment.

Investors also grappled with a mixed bag of economic data, earnings results, a steep drop in crude-oil prices, the prospect of a rate increase by the Federal Reserve, and tumult wrought by the U.S. presidential election.

Following an 11-point decline, the S&P 500 index was off about 2 points, or 0.1% at 2,143, with nine of the 11 main sectors trading in the red. The telecom suffer suffered a 1.8% decline, topping declining sectors with health-care shares up a modest 0.6%.

The Dow Jones Industrial Average , which had been down by as many as 74 points earlier in the session, was off 17 points, or 0.1%, at 18,186, dragged lower by 5.5% slide in Travelers Cos. Inc. (TRV) and a nearly 3% drop in Verizon Communications Inc. (VZ).

Meanwhile, the Nasdaq Composite Index declined 2.6 points to 5,244, after being down by as many as 30 points earlier in the session.

"Markets should be cheering earnings results, as we are looking at a potential positive growth this quarter, but there is so much uncertainty surrounding elections and Fed rate hikes, that markets are a little unsettled," said Karyn Cavanaugh, senior market strategist at Voya Financial.

Cavanaugh said that the Fed isn't going to raise rates in December.

"The dollar is already at the same level as it was last December when the Fed raised rates and a stronger dollar is a problem for many companies with overseas revenues. The Fed is unlikely to risk a hit on earnings and potentially jobs," Cavanaugh said.

The ICE U.S. dollar index is up 0.4% at 98.31--its highest level since March.

European Central Bank President Mario Draghi's remarks on monetary policy also added to uncertainty in financial markets.

The ECB left interest rates unchanged as was widely anticipated. However, during a news conference Draghi (http://blogs.marketwatch.com/thetell/2016/10/20/ecb-live-blog-mario-draghi-expected-to-keep-cards-close-to-vest/)indicated that there was no discussion of tapering or extending the ECB's bond-buying program among European policy makers. The comments sent the euro higher and drove equities lower, while bidding up prices of Treasurys. The euro subsequently gave up gains, while European equities returned to positive territory.

Read: Will Mario Draghi leave investors high and dry in December? (http://www.marketwatch.com/story/will-mario-draghi-leave-investors-high-and-dry-in-december-2016-10-20)

Investors appeared to have brushed off the third and final presidential debate on Wednesday night.

"Last night's final debate of the U.S. presidential campaign appears to have passed off without initiating any significant change in sentiment for the electorate," said Tony Cross, a market analyst for TopTradr, in a research note.

And see:Blow by blow of the final Trump-Clinton debate (http://blogs.marketwatch.com/capitolreport/2016/10/19/presidential-debate-live-blog-and-video-trumps-final-chance-to-knock-clinton-off-track/)

Other markets:Oil futures (http://www.marketwatch.com/story/oil-prices-pull-back-as-investors-cash-in-on-gains-spurred-by-inventory-drop-2016-10-20) settled down 2.3% at $50.43 a barrel, retreating after rising to a 15-month high on Wednesday.

Asian markets (http://blogs.marketwatch.com/thetell/2016/10/20/ecb-live-blog-mario-draghi-expected-to-keep-cards-close-to-vest/?mod=MW_story_latest_news) (http://blogs.marketwatch.com/thetell/2016/10/20/ecb-live-blog-mario-draghi-expected-to-keep-cards-close-to-vest/?mod=MW_story_latest_news)closed broadly higher (http://www.marketwatch.com/story/nikkei-zips-ahead-leading-asian-market-gains-2016-10-19). Gold futures (http://www.marketwatch.com/story/gold-futures-pause-at-two-week-high-ahead-of-potential-interest-rate-clarity-2016-10-20) settled down 0.2% at $1,267.50 an ounce, while the yield in 10-year Treasurys (http://www.marketwatch.com/story/eurozone-bond-yields-tick-lower-as-ecb-leaves-rates-unchanged-2016-10-20) ticked down slightly to 1.74%.

Economic news:The number of people who applied for first-time unemployment benefits (http://www.marketwatch.com/story/jobless-claims-jump-13000-to-260000-2016-10-20)last week climbed 13,000 to 260,000 to match a six-week high, though the pace of layoffs in the U.S. remains exceedingly low.

The Philadelphia Federal Reserve Bank's monthly index (http://www.marketwatch.com/story/philly-fed-index-pulls-back-modestly-to-97-in-october-2016-10-20)on regional manufacturing fell to 9.7 in October from 12.8 in September, which was the highest reading in 19 months, according to data released Thursday.

Sales of previously-owned homes rebounded solidly in September (http://www.marketwatch.com/story/existing-home-sales-jump-higher-in-september-helped-by-first-time-buyers-2016-10-20), a signal that the housing recovery remains on track after a summer lull.

Meanwhile, the leading economic index rose 0.2% in September, a reversal of the 0.2% decline in August, the Conference Board said Thursday.

In other economic news, New York Fed President William Dudley said late Wednesday (http://www.marketwatch.com/story/feds-dudley-expects-rate-hike-says-it-should-be-no-big-deal-2016-10-19) that he expects the central bank will be able to raise interest rates before year-end.

Individual movers: Shares in Tesla Motors Inc.(TSLA) shares fell 1.8% after the electric car maker's product announcement late Wednesday, in which Tesla talked up new self-driving hardware (http://www.marketwatch.com/story/teslas-new-product-self-driving-hardware-that-wont-work-2016-10-19) that won't work right away.

Online auctioneer eBay Inc. (EBAY) plunged 11% after the company gave a weak holiday forecast (http://www.marketwatch.com/story/ebay-revenue-grows-though-profit-declines-2016-10-19-17485141) with its results late Wednesday, but American Express Co.(AXP) rallied 10% after an earnings and revenue beat (http://www.marketwatch.com/story/american-express-shares-rise-4-on-earnings-revenue-beat-2016-10-19).

Insurer (http://www.marketwatch.com/story/travelers-profit-falls-but-beats-expectations-2016-10-20-74855027) Travelers and telecom (http://www.marketwatch.com/story/verizon-shares-slump-despite-earnings-beat-2016-10-20) Verizon. (VZ) were both sharply lower after posting earnings ahead of the open.

Drugstore operator (http://www.marketwatch.com/story/walgreens-stock-slips-after-revenue-miss-2016-10-20)Walgreens Boots Alliance Inc.(WBA) shares rose 4.5%.

Coffee and doughnuts seller (http://www.marketwatch.com/story/dunkin-brands-beats-on-profit-and-backs-full-year-guidance-2016-10-20)Dunkin' Brands Group Inc.(DNKN) lost ground, off 3.6%, following quarterly results.

--Victor Reklaitis in London contributed to this report.

(END) Dow Jones Newswires

October 20, 2016 15:13 ET (19:13 GMT)

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