By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market wobbled in early
morning trade but moved decidedly lower on Thursday, as investors
digested a barrage of mixed economic reports.
Consumer spending and ISM reports were better than expected,
however, jobless claims and construction spending came in below
forecasts, weighing on markets.
The S&P 500 (SPX) was 6 points, or 0.3%, lower at 1,878.39.
The Dow Jones Industrial Average (DJI) shed 50 points, or 0.3%, to
16,529.07, after briefly topping Wednesday's record closing level.
The Nasdaq Composite (RIXF) was 7 points, or 0.2%, lower at
4,107.97.
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action.
A hint of "spring snapback" was present in consumer spending
data. Spending by American households accelerated in March, rising
by the most since August 2009, the Commerce Department reported
Thursday.
U.S. manufacturing companies expanded in April at the fastest
pace since the end of last year, a survey of executives found.
The number of people filing for state unemployment benefits rose
for the second straight week, the Labor Department reported
Thursday. Still, some economists dismissed it as a seasonality.
"This report screams Easter seasonal adjustments, so we are
inclined to ignore it. What matters is where claims settle over the
next few weeks, as the Easter hit fades," wrote Ian Shepherdson,
chief economist at Pantheon Macroeconomics.
Outlays for U.S. construction projects rose 0.2% in March to a
seasonally adjusted annual rate of $942.5 billion, led by private
residential projects, the U.S. Commerce Department reported
Thursday.
In earnings news, shares of Yelp Inc. (YELP) rallied 7.4% after
the online-review company said after the closing bell on Wednesday
that revenue jumped to $76.4 million in the first quarter, from
$46.1 million.
Motorola Solutions Inc. (MSI) first-quarter net earnings came in
slightly below expectations, as sales dropped. The company also
projects revenue decline in the second quarter. Shares fell 4%.
Viacom Inc. (VIA) reported second-quarter profit ahead of
expectations and said it will buy the U.K.'s Channel 5 Broadcasting
Ltd. for 450 million pounds ($761 million). Shares slipped
1.3%.
ConocoPhillips (COP) said profit dropped in the first quarter,
but revenue rose. Shares were up 1.1%.
Weight Watchers International Inc. (WTW) shares jumped 24% after
the weight-loss company late Wednesday reported profit that topped
expectations.
In other financial markets, trading in both Asia and Europe was
muted as most bourses were closed to observe the May Day holiday.
Although Shanghai's market wasn't trading, China released official
data showing manufacturing activity ticked up in April. The pound
(GBPUSD) jumped to a more than four-year high against the dollar
after the U.K.'s manufacturing PMI for April beat expectations.
Gold fell 1% (GCM4), while oil prices (CLM4) moved further below
the $100-a-barrel level.
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