Stocks Dip As Investors Await Jobless Report
The stock market’s recordsetting advance paused Thursday, pulling most indexes lower as investors waited to see if today’s employment report justifies an optimistic outlook on inflation and interest rates.
The Dow Jones industrial average, which closed at new highs on Tuesday and Wednesday, slipped 1.12 to 5,932.85 after trading slightly lower for most of the day.
The session was characterized as a natural pause in the market’s speedy recovery from July’s tumbles, highlighted by a 750-point rebound in the Dow.
“Today was a time-out. The market has done well in recent days, so it deserves a rest, and we have this employment report in front of us,” said A. Marshall Acuff Jr., market strategist at Smith Barney.
The monthly employment reading has jolted the financial markets repeatedly this year with indications of rising payroll costs that could prompt manufacturers to raise prices. But many economists expect the September data to provide further evidence that economic growth is slowing enough to keep inflation under control without higher interest rates.
Declining issues outnumbered advancers by a 10-to-9 margin on the New York Stock Exchange, where volume totaled 386.09 million shares as of 4 p.m., down from Wednesday’s tally of 439.29 million.
Some of the stocks that moved substantially or traded heavily Thursday:
NYSE
Monsanto, up 1-1/4 at 39-7/8.
The stock rose for a second day after St. Louis-based Monsanto reported that the genetically engineered Bt cotton is improving yields 15 percent to 17 percent over traditional cotton varieties.
Church & Dwight, up 1-3/8 at 21-5/8.
The Princeton, N.J.-based maker of Arm & Hammer household products said it expects third-quarter earnings to beat expectations.
Boise Cascade Office Products, up 1-3/8 at 19.
A Dean Witter Reynolds analyst upgraded Boise Cascade Office Products to a “buy” rating, the Dow Jones News Service reported, citing a contact at the firm. Further details weren’t immediately available.
NASDAQ
Starbucks, up 2-1/8 at 39-1/8.
The Seattle-based coffee retailer reported an 8 percent increase in September sales from stores open at least a year. Total September revenues increased 53 percent to $78.3 million. Starbucks said it plans to open at least 325 new company-owned and licensed stores in the next year.
Wall Data, down 9-1/4 at 14.
The Kirkland, Wash.-based software maker expects to report a loss in its third quarter. Wall Data blamed the outlook on declining sales of its software for 16-bit Windows, particularly on international markets.