By Steven Russolillo
NEW YORK (MarketWatch) -- U.S. stocks fell slightly in early
Thursday trading after weak weekly jobs data overshadowed other
economic reports that eased deflation concerns.
The Dow Jones Industrial Average (DJI) was recently down 18
points at 11,077. But financials kept the blue-chip index's gains
in check as Bank of America (BAC) dropped 3.2% and J.P. Morgan
Chase & Co. (JPM) fell 2.7%.
The technology-heavy Nasdaq Composite (RIXF) fell 0.1% to 2,440.
The Standard & Poor's 500 index (SPX) fell 0.1% to 1,176, as
the financial sector was the biggest decliner, down 1.3%.
Thursday's modest declines came after the number of U.S. workers
filing new claims for jobless benefits increased more than expected
last week. The four-week moving average, which aims to smooth
volatility in the data, also rose.
But U.S. producer prices rose for the third month in a row in
September on the back of higher food prices, a move that could help
ease deflation concerns. The U.S. trade deficit also rose in
August, inflated by a record-setting deficit with its largest
trading partner, China.
Among stocks in focus, Yahoo (YHOO) rose 6.8% after The Wall
Street Journal reported AOL and several private-equity firms,
including Silver Lake Partners and Blackstone Group LP, are
considering a possible takeover bid for the Internet company.
Apollo Group (APOL) plunged 25% after the education company
withdrew its fiscal-2011 earnings guidance, citing "the
transitional state of the business and the uncertain regulatory
environment." Shares of other for-profit schools also fell. DeVry
(DV) dropped 17%, Corinthian Colleges (COCO) fell 16% and ITT
Educational Services declined 20%.
Conversely, Winnebago Industries (WGO) rose 3.5%. The
recreational-vehicle maker swung to a fiscal fourth-quarter profit
that easily topped analysts' estimates as revenue surged and
cost-cutting continued to pay off.
The biggest earnings news will come after the closing bell as
Internet-search giant Google (GOOG) and Advanced Micro Devices
(AMD) each report after the market closes. Google was recently off
0.7% and AMD declined 0.7%.
The dollar was weaker against the euro and the yen, whacked by
moves by the Monetary Authority of Singapore to tighten policy. The
dollar has been on a decline recently as expectations have
increased that the Fed will take additional steps to boost the
economy.
The U.S. Dollar Index (DXY), which tracks the currency against a
basket of six others, fell 0.7%. The euro was recently at $1.4060,
up from $1.3957 late Wednesday.
Treasurys fell, pushing the yield on the 10-year note (UST10Y)
up to 2.43%. Crude-oil and gold futures both rose. European stocks
were mostly higher and Asian markets finished with strong
gains.