By Chris Dieterich And Alexandra Scaggs
U.S. stocks pared losses on Thursday afternoon, stabilizing
after heavy selling in overseas markets sent indexes sharply lower
earlier in the session.
The Dow Jones Industrial Average fell 11 points, or 0.1%, to
16792, but had fallen as many as 131 points earlier. The S&P
500 declined two points, or 0.1%, to 1944, on course for its first
four-day slide of the year.
The Nasdaq Composite Index added two points, or 0.1%, to
4423.
Global markets have come under pressure in recent days, halting
this year's steady advance for U.S. stocks amid concerns about the
pace of economic growth and the potential for market disruptions
stemming from Federal Reserve policy changes. The S&P 500 has
seen rocky trading since hitting an all-time high on Sept. 18.,
shedding 2% this week.
"We are at a big crossroads," said Michael Purves, head of
equity derivatives research at Weeden & Co., a brokerage in
Greenwich, Conn. "The market has been doing two steps forward one
step back."
An up-and-down session in the U.S. on Thursday followed steep
market declines in Europe and Asia. The Stoxx Europe 600 Index
dropped 2.4%, the largest one-day drop in more than three months.
In Tokyo, the Nikkei Stock Average fell 2.6%, its biggest one-day
slide since Aug. 8.
European stocks fell sharply after the European Central Bank
left rates unchanged and investors said that the ECB provided few
details of plans to expand its balance sheet.
"Clearly people are looking for further stimulation" of the
economy by the ECB, said Matthew Beesley, head of global equities
at Henderson Global Investors in London, which manages about $128
billion.
But U.S. stocks mounted a comeback in afternoon trading. The
Russell 2000 rallied 0.7% after a sharp drop on Wednesday sent the
small-cap stock benchmark into correction territory, meaning the
index has declined more than 10% from its July high.
Safe-haven government bonds also lost ground after a recent
rally. The yield on benchmark 10-year Treasury notes inched higher
to 2.418%, compared with 2.405% late on Wednesday, which was its
lowest in more than a month. Bond yields rise when prices fall.
In economic news Thursday, data showed that the number of
Americans filing for weekly unemployment benefits fell by 8,000 to
287,000 in the most recent week. U.S. factory orders in August
dropped 10.1% from the month earlier, slightly more than
expected.
Investors are looking ahead to September's jobs report due
Friday. Economists expect that the U.S. economy created 215,000
nonfarm payrolls last month compared with 142,000 in August. The
unemployment rate is expected to be unchanged at 6.1%
Oil prices inched higher after falling to more than one-year
lows earlier in the session, as oil producers showed no signs of
cutting back on production amid a global surplus. U.S. oil futures
added 0.1% to $90.78 a barrel.
Gold futures slipped 0.1% to $1215.10 an ounce.
Berkshire Hathaway unveiled plans to enter the auto dealership
market Thursday, as famed investor Warren Buffett's firm agreed to
buy Van Tuyl Group, the largest privately owned auto dealership
group in the U.S. Terms weren't disclosed. Berkshire's Class B
shares added 0.8%.
Constellation Brands, the maker of Robert Mondavi wines and
Corona beer, rose 0.3% after the company's second-quarter earnings
missed sales and profit expectations. Constellation also said it
would buy a glass plant in Nava, Mexico, from Anheuser-Busch
InBev.
Tesla Motors rose 3.8% after the electric auto maker's Chief
Executive Elon Musk hinted at an announcement of new products on
social media.
DirecTV rose 0.9% after the company reached a multiyear
agreement with the National Football League to extend the
satellite-TV provider's exclusive right to carry every Sunday
afternoon game.
Online commerce company Wayfair rose 25% in its debut after
pricing 11 million shares at $29, above the expected range. The
company specializes in home furnishings such as couches and
lamps.
Write to Chris Dieterich at chris.dieterich@wsj.com