By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks finished Thursday's
session lower, as investors treaded cautiously at the outset of
earnings season and a day ahead of a key September jobs report that
might determine whether more monetary stimulus from the Federal
Reserve is on the way.
"All eyes are on tomorrow's jobs report with investors looking
for some improvement," said Michael Sheldon, chief market
strategist at RDM Financial Group.
After rising to within a few points of the psychologically
significant 11,000 level, the Dow Jones Industrial Average (DJI)
ended off 19.07 points, or 0.2%, at 10,948.58. Shares of Alcoa (AA)
fronted blue-chip losses, falling 1.4% ahead of the aluminum
giant's earnings after the close.
The S&P 500 Index (SPX) fell 1.91 points, or 0.2%, to
1,158.06, with telecoms and materials falling the most among its 10
industry groups.
The tech-heavy Nasdaq Composite Index (RIXF), however, finished
slightly higher, gaining 3.01 points, or 0.1%, to 2,383.67.
Decliners edged past advancers on the New York Stock Exchange,
where volume totaled 916 million.
The dollar rebounded against the euro, which had pushed to a new
eight-month high above $1.40 as European Central Bank President
Jean-Claude Trichet's remarks made comments on currencies.
The dollar index (DXY), which contrasts the greenback with six
currency rivals, rose to 77.458, up from its 77.397 level in late
New York trade Wednesday.
Crude-oil futures fell $1.56 to finish at $81.67 a barrel on the
New York Mercantile Exchange, while gold futures fell $12.70 to end
at $1,335 an ounce.
The weekly jobless-claims data came a day before the release 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 nearly 3% after the beverage
company lowered its earnings forecast. .
"Overall market internals have been improving in recent weeks,
and barring a major development it appears markets are likely to
head higher into the fall," said RDM Financial's Sheldon.