By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market ended Thursday's
choppy trade generally lower as traders stuck to the sidelines
ahead of the key jobs report due Friday morning.
The benchmark S&P 500 and the Dow Jones Industrial Average
broke their three-day run as investors assessed a slew of mixed
economic reports and earnings results. The Nasdaq Composite defied
the trend and closed higher for the third straight day.
Consumer spending and ISM reports were better than expected,
while jobless claims and construction spending missed
forecasts.
The S&P 500 (SPX) ended the day less than a point lower at
1,883.68. The Dow Jones Industrial Average (DJI) lost 21.97 points,
or 0.1%, to 16,558.87, retreating from the record closing level
reached on Wednesday. The Nasdaq Composite (RIXF) added 12.9
points, or 0.3% to 4,127.45.
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action.
Nicholas Colas, chief market strategist at ConvergEx Group, a
global brokerage company based in New York, described the markets
as 'faith-based'.
"Markets are mirroring the economy and investors are putting a
lot of faith in big improvements in the second half," Colas
said.
Spending, manufacturing improve
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 from the Institute for
Supply Management showed.
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 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.
The jobs report, the most important measure of the U.S. economy,
is scheduled to be released at 8:30 a.m. Eastern on Friday. Read:
What to look for in April U.S. jobs report.
Yelp rallies, Motorola falls
In earnings news, shares of Yelp Inc. (YELP) rallied 9.8% 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
1.5%.
Viacom Inc. (VIA) reported second-quarter profit ahead of
expectations and said it would buy the U.K.'s Channel 5
Broadcasting Ltd. for 450 million pounds ($761 million). Shares
slipped 1.7%.
ConocoPhillips (COP) said profit dropped in the first quarter,
but revenue rose. Shares rose 1%.
Weight Watchers International Inc. (WTW) shares jumped 20% after
the weight-loss company late Wednesday reported profit that topped
expectations.
In other financial markets, trading in Asia and Europe was muted
as most bourses were closed to observe the May Day holiday.
Gold prices fell (GCM4), while oil prices (CLM4) moved further
below the $100-a-barrel level.
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